Which of the Following Is True Regarding Convertible Securities

question 101

Multiple Choice

Which of the following is true regarding convertible securities:

• A)a convertible bondholder is forced to convert at a specific time.
• B)the convertible option on a bond gives the owner the right to buy shares from a company at a set price.
• C)the owner of a warrant option will benefit if the firm's stock does poorly.
• D)the owner of a warrant option will benefit if the firm's stock does well.

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