Concerning warrants and call options,which of the following statements generally is correct?
A) The issue procedures for both are quite similar.
B) When a call option is exercised,the firm must issue new equity.
C) When a warrant is exercised,existing equity changes hands.
D) Exercise of a call option does not affect share value,but warrant exercise does.
E) None of the above is correct.
Correct Answer:
Verified
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