BrightView Windows issued warrants with an exercise price of $17. BrightView's common stock currently sells for $20 per share. The warrants are:
A) in the money.
B) out of the money.
C) valuable.
D) not very valuable.
E) Both in the money and valuablE.

Question

Quizplus · Accepted Answer

The warrants are "in the money" because the exercise price ($17) is less than the current stock price ($20), making them valuable as they allow the purchase of stock below market price.

BrightView Windows Issued Warrants with an Exercise Price of $17