Which of the following instruments gives the owner the right to purchase securities directly from the firm at a fixed price during a specified period of time?
A) Warrant
B) Call option
C) American option
D) European option

Question

Quizplus · Accepted Answer

A warrant gives the owner the right to purchase securities directly from the firm at a fixed price during a specified period of time. Call options and American/European options give the owner the right, but not the obligation, to purchase securities at a fixed price, but they are traded on an exchange rather than being issued by a firm.

Which of the Following Instruments Gives the Owner the Right