27. Warrants and call options have many similarities. Which of the following statements accurately describes we similarities between warrants and call options? a. Calls and warrants are both issued by corporations. b. Calls and warrants result in the issuance of new stock when exercised. c. Calls and warrants typically have similar expiration periods. d. Calls and warrants can both be bought and sold. 28. Ethan owned 100 shares of IBM. He then wrote a call option on IBM. Why did he do it? a. To profit if IBM declines. b. To generate additional income in a relatively stable market. c. To hedge an existing stock position in a declining market. d. To hedge an existing stock position in an advancing market. 29. A call option is available on the stock of Rally Corporation. The exercise price is $65. The call option price is $7. Rally stock is currently selling for $70 per share. What is the "intrinsic value of the put option? a. $0. b. $3. c. $5. d. $10. fullonin risks cycent