Which of the Following Best Defines a Conversion Price

question 229

Multiple Choice

Which of the following best defines a conversion price?

• A) An option that can be exercised at any time until its expiration date.
• B) The right to buy an asset at a fixed price during a particular period of time.
• C) The dollar amount of a bond's par value that is exchangeable for one share of stock.
• D) The number of shares per bond received for conversion into stock.
• E) The value of a convertible bond if it was immediately converted into common stock.

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Definitions:

Futures Contract

A formal legal contract to purchase or sell a specific commodity or financial instrument at an agreed-upon price at a future date.

Lifetime Low

The lowest price level that a security or market index has reached over the entire period it has been traded.

Lifetime High

The highest price level that a stock or asset has achieved over its entire trading history up to the present moment.

Futures Contracts

Standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.