CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Which of the following instruments gives the owner the right to purchase securities directly from the firm at a fixed price for a specified time?

I. Warrant
II. Call option
III. Put option
Correct Answer: I only

User Contributed Comments 10

User Comment
LondonBoy Why not I & II ?
niti Question says directly from firm.Hence ans is I only.
danlan That's the difference between Warrant and Call option: directly from firm/not.
mtcfa Got it.
Rotigga Caught me off guard. Good question.
cslau83 Call could be direct from company when company writes call.
gulfa99 "for a specified time"
Creep Indeed, it's the "specified time" clause that is the kicker....
jonan203 "specified time" has nothing to do with it, call and put options have a limited life over a "specified time" as well; however, they are traded on exchanges, not by the company!
gill15 Damn...nice catch--- some of these just get you...
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