If price at which stock is purchased exceeds market value then stock warrants will

A. be exercised

B. not be exercised

C. be discounted

D. not be discounted

Answer: Option A

Solution(By Examveda Team)

If price at which stock is purchased exceeds market value then stock warrants will be exercised. A stock warrant represents the right to purchase a company's stock at a specific price and at a specific date. A stock warrant is issued directly by a company to an investor. Stock options are purchased when it is believed the price of a stock will go up or down.