ExitVCEDumpFINRA-SERIES-6FINRA Investment Company and Variable Contracts Products Representative (IR)
Question 20 of 49
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Q20Single choice
A warrant differs from a standard call option in that:
A
a standard call option generally has a longer period to expiration than a warrant.
B
when a warrant is exercised, the firm whose stock is being purchased will have an increase in cash; this is not the case when a standard call option is exercised.
C
a warrant gives the holder the right to sell shares of the underlying stock; a call option gives the holder the right to buy shares of the underlying stock.
D
when a call option is exercised, the outstanding shares of the firm whose stock is being purchased increases; this does not occur when a warrant is exercised.