When a company writes a call option on new stock in the company, it is called a ________.
A) convertible bond
B) put option
C) stock option
D) warrant

Question

Quizplus · Accepted Answer

When a company writes a call option on new stock in the company, it is called a warrant. A warrant is a security that entitles the holder to buy stock of the company at a specific price, usually above the current market price, within a specified time frame.

When a Company Writes a Call Option on New Stock