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A Warrant Has an Exercise Price of $40,and the Current

Question 84

Multiple Choice

A warrant has an exercise price of $40,and the current stock price is $38.An investor holding this option will purchase the stock only if the:


A) dividend yield on the stock exceeds 10%.
B) stock price falls below $38.
C) stock price rises above $40.
D) stock price falls to $20 or below.

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