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Stock purchase warrants are essentially financial instruments that give the holder the right, but not the obligation, to buy a specific number of shares of the company's common stock at a predetermined price, known as the exercise price, within a specified time frame. This feature is akin to a call option, where the investor has the opportunity to purchase a security at a designated price before the option expires.

The correct answer accurately describes stock purchase warrants as a call option on the corporation's common stock, emphasizing the leverage they provide to investors seeking to capitalize on potential future increases in stock prices. By holding a warrant, investors can benefit from future equity growth without initially having to purchase the underlying shares outright, which can be a strategic advantage in a rising market.

This financial instrument is often used in corporate finance to attract investment, as they can enhance the potential return for investors by offering an additional upside if the company's stock performs well. Understanding stock purchase warrants is critical for anyone studying investment vehicles and corporate financing strategies.