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Which One of the Following Is a Correct Statement

Question 19

Multiple Choice

Which one of the following is a correct statement?


A) Exercise of warrants results in more outstanding shares of stock, while exercise of listed call options does not.
B) A convertible bond consists of a straight bond plus a specified number of detachable warrants.
C) Call options always have an initial maturity greater than one year while warrants have an initial maturity less than one year.
D) Call options may be convertible into the stock while warrants are not convertible into the stock.

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