Two major differences between a warrant and a call option are:
A) warrants are contracts outside of the firm while options are within the firm.
B) warrants have long maturities while options are usually short maturities.
C) warrant exercise dilutes the value of equity while option exercise does not.
D) Both warrants are contracts outside of the firm while options are within the firm; and warrant exercise dilutes the value of equity while option exercise does not.
E) Both warrants have long maturities while options are usually short maturities; and warrant exercise dilutes the value of equity while option exercise does not.
Correct Answer:
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A)
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