What differentiates warrants from call options?

Warrants are indeed characterized by their longer expiration dates compared to call options. A warrant can have a lifespan of several years, often extending up to 10 years or more, while call options typically have much shorter maturities, usually ranging from a few weeks to a few months. This longer duration allows investors holding warrants more time to profit from price movements in the underlying asset, making them an appealing choice for long-term investors looking to capitalize on potential future price increases.

Warrants are also unique because they are often issued by the companies whose stocks are underlying the warrants, enabling companies to raise capital. This issuance is a significant point of differentiation compared to call options, which are generally created by market participants and traded on exchanges, involving no direct link to company-sponsored events. Additionally, while warrants can be traded on exchanges, they are not always standardized like call options, which come in standardized contracts with predefined terms. This combination of longer maturity and the context of issuance gives warrants their distinctive character in financial markets.