Multiple Choice
Which one of the following is a correct statement?
A) Exercise of warrants results in more outstanding shares of stock, while exercise of listed call options does not.
B) A convertible bond consists of a straight bond plus a specified number of detachable warrants.
C) Call options always have an initial maturity greater than 1 year, while warrants have an initial maturity less than 1 year.
D) Call options may be convertible into the stock, while warrants are not convertible into the stock.
Correct Answer:
Verified
Correct Answer:
Verified
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