Comparing Warrants vs. Call Options in Corporate Securities

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What does dilution mean when referring to investing in warrants?

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 75,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

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

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

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

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
Support