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Two Major Differences Between a Warrant and a Call Option

Question 21

Multiple Choice

Two major differences between a warrant and a call option are that


A) warrants have long maturities while options are usually short maturities, and warrant exercise dilutes the value of equity while options exercise usually does not.
B) warrants are contracts outside of the firm while options are within the firm.
C) warrants have long maturities while options are usually short maturities.
D) warrant exercise dilutes the value of equity while options exercise usually does not.

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