____ are examples of contingent claims.
A) Convertible bonds and warrants
B) Warrants and extendible notes
C) Options and extendible notes
D) Convertible bonds, options, and warrants

Question

Quizplus · Accepted Answer

Contingent claims are financial instruments that derive their value from the value of an underlying asset or financial variable. Convertible bonds, options, and warrants are examples of contingent claims because their value is contingent upon the price of the underlying stock or asset. Extendible notes, on the other hand, are not necessarily contingent on any underlying asset or variable and are therefore not considered a contingent claim.

____ Are Examples of Contingent Claims