Warrants are similar to call options on stocks.What is the warrant equivalent of the strike price?
A)The initial price of the warrant
B)The market price of the warrant
C)The exercise price of the warrant
D)None of the above

Question

Quizplus · Accepted Answer

The exercise price of a warrant is equivalent to the strike price of a call option. This is the price at which the holder of the warrant has the right to buy the underlying stock.

Warrants Are Similar to Call Options on Stocks