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Concerning Warrants and Call Options,which One of the Following Statements

Question 2

Multiple Choice

Concerning warrants and call options,which one 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 stock.
C) When a warrant is exercised,existing stock changes hands.
D) Exercise of a call option does not affect share value but warrant exercise does.
E) The issuance of a call option generally decreases share value.

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