Rights and warrants are the riskiest types of options.

Name: Rights and warrants are the riskiest types of options.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Rights and warrants are not options; they are securities that give the holder the right to purchase shares at a certain price before expiration, but they are different from options in terms of their origin, purpose, and how they are traded. Options are contracts that give the right, but not the obligation, to buy or sell an asset at a predetermined price within a specific period.

Rights and Warrants Are the Riskiest Types of Options