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 call options does not.
D) When call options are exercised existing shares trade hands whereas if warrants are exercised new stock must be issued.
E) None of these.

Question

Quizplus · Accepted Answer

Call options do have an exercise price, just like warrants. The statement that warrants do not have an exercise price is incorrect.

Which of the Following Would Not Describe the Difference Between