Which financial instrument gives the holder an option to purchase a specified number of shares at a predetermined price over a given period?

Question

Quizplus · Accepted Answer

An equity warrant is a type of financial instrument that gives the holder the right to purchase a specified number of shares at a predetermined price over a given period. This makes A the correct answer. B) A put option gives the holder the right to sell a specified number of shares at a predetermined price over a given period. C) An ordinary preference share is a type of stock that usually pays a fixed dividend and has a higher claim on assets and earnings than common stock. D) A debenture is a type of debt instrument that is backed by the creditworthiness of the issuing entity and usually pays a fixed interest rate.

Which Financial Instrument Gives the Holder an Option to Purchase