Which of the following describes a difference between a warrant and an exchange-traded stock option?
A. In a warrant issue, someone has guaranteed the performance of the option seller in the event that the option is exercised
B. The number of warrants is fixed whereas the number of exchange-traded options in existence depends on trading
C. Exchange-traded stock options have a strike price
D. Warrants cannot be traded after they have been purchased
B
A warrant is a fixed number of options issued by a company. They often trade on an exchange after they have been issued.
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