The gain from exercising a warrant is similar to the gain from exercising a call option except:
A)the gain on a warrant is greater by the fraction of warrant shares divided by total shares.
B)the gain on a warrant is limited by the firm's value after being reduced by the debt of the firm.
C)the gain on a warrant is decreased by the fraction of original shares divided by total post exercise shares.
D)Both A and B.
E)Both B and C.

Question

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The Answer of The gain from exercising a warrant is similar to the gain from exercising a call option except:
A)the gain on a warrant is greater by the fraction of warrant shares divided by total shares.
B)the gain on a warrant is limited by the firm's value after being reduced by the debt of the firm.
C)the gain on a warrant is decreased by the fraction of original shares divided by total post exercise shares.
D)Both A and B.
E)Both B and C.

The Gain from Exercising a Warrant Is Similar to the Gain