Warrants:
A) allow their holder to purchase shares at the current market price.
B) have a guaranteed maturity value.
C) grant the option to purchase either stocks or bonds at the holders discretion.
D) have an expiration date.

Question

Quizplus · Accepted Answer

Warrants have an expiration date, which means they are only valid for a certain period of time. They give the holder the right to purchase a specific number of shares at a predetermined price before the expiration date. However, they do not necessarily have a guaranteed maturity value, nor do they grant the option to purchase either stocks or bonds.