1A) Firms issue warrants for which of the following reasons?

I. Allows the company to sell stock at a price above what other company stock is selling for.

II. Allows the company to choose which investors are allowed to buy the companys stock

	A.	Only statement I is correct
	B.	Only statement II is correct
	C.	Both statement I and II are correct
	D.	Neither statement I nor II is correct

1B) The____________is the price that the call option buyer pays the writer of the option if the buyer decides to exercise the option.

	A.	option premium
	B.	option discount
	C.	conversion price
	D.	exercise price

1C) A(n) __________________ is a call option issued by a company on its securities, usually common stock.

	A.	debenture
	B.	warrant
	C.	futures contract
	D.	extendible note