A___________ is an option included as part of a bond or preferred stock that permits the holder toconvert the security into a specified number of shares of common stock.

Question

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A conversion feature is an option included as part of a bond or preferred stock that permits the holder to convert the security into a specified number of shares of common stock. Option A, repurchase agreement, refers to an agreement between a buyer and a seller in which the seller agrees to repurchase the asset at a predetermined price and date. Option B, stock-purchase warrant, is a security that gives the holder the right to purchase a specific number of shares of stock at a predetermined price within a certain time frame. Option C, put option, is an option that gives the holder the right to sell a specified amount of an underlying asset at a predetermined price within a certain time frame.

A___________ Is an Option Included as Part of a Bond