what is a warrant 
warrants are a derivative that give the right but not the obligation to buy or sell a security most commonly an equity at a certain price before expiration the price at which the underlying security can be bought or sold is referred to as the exercise price or strike price an american warrant can be exercised at any time on or before the expiration date while european warrants can only be exercised on the expiration date warrants that give the right to buy a security are known as call warrants those that give the right to sell a security are known as put warrants 