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

Question 49

Multiple Choice

Concerning warrants and call options,which one 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) The issuance of a call option generally decreases share value.

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