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

Question 2

Multiple Choice

Concerning warrants and call options,which 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) None of these. is correct.

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