Final answer:
Rights and warrants are distributed by the issuing company and then traded between investors on the secondary market, which provides liquidity.
Step-by-step explanation:
Options are financial instruments that are created on the stock exchanges where they are traded, allowing investors the right to buy or sell a security at a predetermined price within a certain time frame. Rights and warrants, however, originate from the company that is issuing them and are typically distributed to existing shareholders. Therefore, the answer to the question “Rights and warrants originate:" is A) On the secondary market. This is because after initial distribution by the issuing company, rights and warrants are traded between investors on the secondary market. This market allows for the increased liquidity of these financial instruments, as they can be sold back to either the original issuer or to another person or group without a significant penalty for liquidation.