A warrant has an exercise price of $40, and the current stock price is $38.An investor holding this option will purchase the stock only if:

Question

Quizplus · Accepted Answer

The investor holding this warrant will purchase the stock only if the stock price rises above the exercise price of $40. As the current stock price is only $38, the investor would not exercise the warrant at its current price. Therefore, options A, B, and D are incorrect.

A Warrant Has an Exercise Price of $40, and the Current