Which of the following is a characteristic difference between a warrant and a call option?
A) A call option will typically have a longer maturity than a warrant.
B) Call options are issued by individuals while warrants are issued by firms.
C) Call options can be allowed to expire while warrants cannot.
D) Neither warrants nor call options affect firm value.
E) Unlike warrants, when call options are exercised, the number of shares of stock outstanding increases.
Correct Answer:
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