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All main topics / Finance & Investment / Derivatives / Derivatives
7.Which of the following describes a difference between a warrant and an exchange-traded stock option?
A.In a warrant issue, someone has guaranteed the performance of the option seller in the event that the option is exercised
B.The number of warrants is fixed whereas the number of exchange-traded options in existence depends on trading
C.Exchange-traded stock options have a strike price
D.Warrants cannot be traded after they have been purchased

Answer: B

A warrant is a fixed number of options issued by a company. They often trade on an exchange after they have been issued.
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Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015




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