Which of the following would not describe the difference between warrants and call options?
A)Warrants are issued by ﬁrms whereas call options are issued by individuals.
B)Call options have an exercise price whereas warrants do not.
C)Exercising of warrants creates dilution whereas exercising all options does not.
D)When call options are exercised existing shares trade hands whereas if warrants are
Exercised new equity must be issued.
E)None of the above.

Question

Quizplus · Accepted Answer

Call options and warrants both have an exercise price. The main difference lies in their issuance and the effect on company equity, not the presence of an exercise price.

Which of the Following Would Not Describe the Difference Between