What are the unique features of warrants over other options?

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The Answer is Warrants are usually call options that companies issue on their own equity.In contrast to exchange-traded options,which are mere bets between investors on the value of a company's underlying equity,warrants are contracts between a corporation and an investor.The major distinction between a warrant and other types of call options is that the company issues additional equity when an investor exercises a warrant.Upon exercise,the equity is sold to the warrant holder at the strike price.Since exercise occurs only when the strike price is less than the current share price,the exercise of the warrant involves the issuance of new shares of equity at bargain prices.The new shares dilute the value of existing shares.Because of this dilution,option pricing models used to value warrants differ from option pricing models used to value exchange-traded options.

What Are the Unique Features of Warrants Over Other Options