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A warrant differs from a standard call option in that:
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C. 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.
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.
Answer: C
Explanation:
Explanation/Reference:
Explanation: A warrant differs from a standard call option in that 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. Both the warrant and the call option give the holder the right to purchase shares of a firm's stock, but the writer (seller) of a warrant is the firm itself whereas the writer of a standard call option is simply another investor. Upon exercising a warrant, the investor buys the stock from the firm itself, which increases the firm's cash account. When a call option is exercised, another investor's cash account is increased. For the same reason, when a call option is exercised, nothing happens to the outstanding shares of the firm; but when a warrant is exercised, the firm's outstanding shares will increase.

NEW QUESTION: 2
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Was ist nach dem Wahlprozess die Root Bridge im HQ LAN?

A. Schalter 4
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D. Schalter 2
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NEW QUESTION: 3
ISDN BRI 中 D 信道的速率是 ______ 。
A. 54 Kbps
B. 16 Kbps
C. 64 Kbps
D. 36 Kbps
Answer: B


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