A conversion option gives a valuable right to a bond's _______; a put option gives a valuable right to a bond's _______.
A) issuer; issuer
B) issuer; holder
C) holder; issuer
D) holder; holder

Question

Quizplus · Accepted Answer

A conversion option allows the bondholder to convert the bond into a predetermined number of shares, thus giving a valuable right to the holder. A put option allows the bondholder to sell the bond back to the issuer at a specified price, also giving a valuable right to the holder.

A Conversion Option Gives a Valuable Right to a Bond's