Warrants Differ from Listed Options in That

Multiple Choice

Warrants differ from listed options in that:
I. Exercise of warrants results in dilution of a firm's earnings per share.
II. When warrants are exercised, new shares of stock must be created.
III. Warrant exercise results in cash flows to the firm, whereas exercise of listed options does not.

A) I only
B) I and II only
C) II and III only
D) I, II, and III