d. Warrant-Holding Lenders' Financial Benefit
A warrant-holding lender is the case most like an equity holder. A warrant is a derivative security that gives the holder the right to buy equity from the issuer at a certain price within a specific time frame. n247 Warrants [*121] are somewhat like call options, but issued and guaranteed by the company and measured in years, unlike options which are exchange instruments measured in months. n248 As a warrant's exercise will occur at the lender's discretion within the parameters of the warrant agreement, the terms of the debt issue and its attractiveness will be affected by the expectations for the equity's performance. To this degree, the lender benefits from infringement if infringement boosts the value of the equity (at least in the short term before litigation). Warrant-holding lenders thus ought to be held to the same standard as an equity holder.