Investors who hold warrants essentially have a:
A)Put option on the firm's bonds
B)Put option on the firm's equity
C)Call option on the firm's bonds
D)Call option on the firm's equity

Question

Quizplus · Accepted Answer

Investors who hold warrants essentially have a call option on the firm's equity, which gives them the right to purchase stock at a specific price within a specific time frame.

Investors Who Hold Warrants Essentially Have A