Difference Between Warrants and Options
Warrants vs Options
Options and warrants are two common derivatives traded in stock and derivative exchanges. Both are options to purchase stock at a fixed price. Characteristically, both derivatives share similar leverage features. It is no wonder that they are often thought to be the same. They may almost behave alike but they are totally different instruments.
A security that entitles the holder to buy stock of the issuing company at a specified price (exercise price) is called a warrant.