Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'covered warrant'?

A. warrant that permits the holder to acquire a specified amount based on the performance of an index during a specified period at a specified price
B. warrant giving the buyer (holder) the right, but not the obligation, to sell the assets specified (i.e., acquire cash in exchange for the underlying assets) back to the issuer at a fixed price or formula, on or before a specified date
C. warrant that gives the holder the right, but not the obligation, to buy (call warrant) or to sell (put warrant) an underlying asset at a specified price (the strike or exercise price) by a predetermined date, issued without an accompanying security by a third party that does not hold as many securities as would be required if all the warrants are exercised
D. warrant that gives the holder the right, but not the obligation, to buy (call warrant) or to sell (put warrant) an underlying asset at a specified price (the strike or exercise price) by a predetermined date, issued without an accompanying security by a third party that holds as many securities as would be required if all the warrants are exercised

Answer: warrant that gives the holder the right, but not the obligation, to buy (call warrant) or to sell (put warrant) an underlying asset at a specified price (the strike or exercise price) by a predetermined date, issued without an accompanying security by a third party that holds as many securities as would be required if all the warrants are exercised