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[Music] [Music] hello YouTube welcome back so today were going to talk a little bit about warrants and were going to explain what a warrant is a warrant is a type of derivative it derives its price from the price for another asset which is a stock and it looks an awful lot like a call option so really what were gonna mostly become --scent rating on is how a warrant differs from a call option this is the first video of mine youve watched you should probably also watch the one on call options because that will explain some of the payoffs but anyhow so a warrant is very similar to a call option in that you pay for it you spend a certain amount of premium and you get the right but not the obligation to buy the underlying at some price in the future but there are kind of three big differences between a warrant and a call option usually a call option is a derivative thats just exists in the market and has nothing to do with the underlying company while the warrant is actually issued by