When a Contract Is Formed from a Party's Actions Rather

question 14

Short Answer

When a contract is formed from a party's actions rather than the party's words,it is called a[n] _______ contract.

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Definitions:

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at a specified price before a certain date.

Conversion Price

The price per share at which a convertible security, such as convertible bonds or preferred shares, can be converted into common stock.

Semi-Annually

A term indicating something that happens twice a year or every six months.

Straight Bond Value

The value of a bond that does not have any embedded options, calculated by considering its coupons and principal repayment, discounting back at an appropriate yield rate.