Which of the following is a characteristic difference between a warrant and a call option?

Multiple Choice

• Call options are issued by individuals while warrants are issued by firms.

• Unlike warrants, when call options are exercised, the number of shares of stock outstanding increases.

• Call options can be allowed to expire while warrants cannot.

• A call option will typically have a longer maturity than a warrant.

• Neither warrants nor call options affect firm value.