712 Warrants (continued Warrants are traded in the same way as stocks The issuer settles up with the holder When a warrant is exercised When call warrants are issued by a corporation on its own stock exercise Will lead to new treasury stock being issued Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 7.12 Warrants (continued) • Warrants are traded in the same way as stocks • The issuer settles up with the holder when a warrant is exercised • When call warrants are issued by a corporation on its own stock, exercise will lead to new treasury stock being issued