Which one of these features applies to call options but not to warrants?
A)Market value that changes
B)Value based on underlying asset
C)Absolute minimum value of zero
D)Issued by individuals
E)Exercise price

Question

Quizplus · Accepted Answer

Warrants are typically issued by the corporation or financial institution that issues the underlying asset, whereas call options can be created and sold by individual investors or entities. This is the key difference between the two, as both involve the right to buy an asset at a specific price before a certain date, but their issuance is what sets them apart.

Which One of These Features Applies to Call Options but Not