What is a "warrant"?
A)A contract in which two parties agree to exchange cash flows (e.g.interest cash flows).
B)A contract in which one party commits upfront to buy or sell commonly traded items at a defined price and maturity date.
C)A contract in which one party commits upfront to buy or sell something at a defined price at a defined future date.
D)A contact that gives the right,but not the obligation,to buy a share at a specified price over a specified period of time.

Question

Quizplus · Accepted Answer

A warrant is a contract that gives the holder the right to buy a share at a specified price over a specified period of time, but without the obligation to do so. It is a type of derivative security typically issued by companies or financial institutions to raise capital.

What Is a "Warrant