If a Convertible Bond Can Be Thought of as a Straight

question 55

Multiple Choice

If a convertible bond can be thought of as a straight bond with a call option, then the call is owned by the _____, and the strike price is the _____.

• A) debt issuer; stock price
• B) debt issuer; straight bond value
• C) bond investor; stock price
• D)bond investor; straight bond value

---

Definitions:

Moro Reflex

An involuntary response seen in newborns, which is triggered by a sudden lack of support, causing the baby to extend and then curl the arms and legs.

Babinski Reflex

A reflex action in infants, where the big toe moves upward or toward the top surface of the foot, and the other toes fan out in response to the stroking of the sole.

Startle Reflex

An involuntary reaction to a sudden unexpected stimulus, such as a loud noise or sudden movement, demonstrating the body's automatic response.

Neuron

A neuron is a specialized cell transmitting nerve impulses; a nerve cell.