Warrant valuation (as presented in this text) is similar to option valuation except that one applies a dilution factor to the option value to arrive at a warrant value.

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Quizplus · Accepted Answer

This statement is true as warrant valuation involves calculating the value of a warrant using the Black-Scholes model similar to option valuation, but with the additional consideration of dilution caused by the issuance of new shares upon exercise of the warrant.

Warrant Valuation (As Presented in This Text) Is Similar to Option