Fannie Mae (FNMA)

[Mikey Mike]

Keeping a warrent protects the person from a price drop.

Like I said...a warrant is a form of insurance...in the case one is unable to make a payment...

It is unlike an option in that a warrant is issued by a company, whereas an option is an instrument of the stock exchange. The security represented in the warrant (usually share equity) is delivered by the issuing company instead of by an investor holding the shares.

What you're talking about is an option...not a warrant...boards are given stock options, big investors are given stock options too...