Comparing Warrants vs. Call Options in Corporate Securities


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question 1 of 3

What does dilution mean when referring to investing in warrants?

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1. Which of the following is TRUE of convertible bonds?

2. Which of the following is TRUE of call options?

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About This Quiz & Worksheet

There are some distinct differences between warrants and call options. Use the quiz and worksheet to gauge your knowledge of these differences in corporate securities as well as convertible bonds.

Quiz & Worksheet Goals

You will be tested on these financial topics:

  • Characteristics of call options
  • A typical maturity date for a warrant
  • The meaning of dilution in relation to warrants and call options
  • A true statement about convertible bonds
  • Finding the cost of a warrant

Skills Practiced

  • Information recall - access the knowledge you have gained about the meaning of dilution
  • Interpreting information - verify that you can read information about characteristics of a call option and interpret them correctly
  • Distinguishing differences - compare and contrast main topics, such as warrants and call options

Additional Learning

Examine the lesson titled, Comparing Warrants vs. Call Options in Corporate Securities to learn more about these financial offers. Some objectives you will be able to cover include:

  • Define warrant
  • See why companies use call options
  • Review characteristics of convertible bonds