Warrants and call options are similar because:

Question

Quizplus · Accepted Answer

Both warrants and call options give the holder the right to purchase shares at a predetermined price, which can give them leverage on the company's share price. The other options are not necessarily true - warrants do not always require the issuance of new shares, and call options do not necessarily affect the share value when exercised. Also, while both are issued by corporations, that alone is not a defining similarity between warrants and call options.

Warrants and Call Options Are Similar Because