The exercise price or option price of a warrant is normally set below the market price of the firm's stock at the time of issuance.

Name: The exercise price or option price of a warrant is normally set below the market price of the firm's stock at the time of issuance.
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The exercise price of a warrant is typically set above the current market price of the stock at the time of issuance, providing an incentive for investors if the stock's price increases.

The Exercise Price or Option Price of a Warrant Is