When a company writes a 'call option' on new shares in the company, it is called a
A)put option.
B)stock option.
C)warrant.
D)convertible bond.

Question

Quizplus · Accepted Answer

When a company writes a 'call option' on new shares in the company, it is called a warrant. A warrant gives the holder the right to buy company stock at a specific price, usually higher than the current market price.

When a Company Writes a 'Call Option' on New Shares