A Convertible Note May Be Accurately Described As

A convertible note may be accurately described as:
A. A derivative financial instrument that affords the holder a stream of cash flows and benefits associated with being a shareholder but transfers the risk to the holders of the convertible options.
B. A secondary financial instrument that from the perspective of the issuer contains a contractual obligation to deliver cash and a put option.
C. A simple financial instrument that affords the holder the access to a stream of cash flows in the form of either dividends or interest payments.
D. A compound financial instrument that from the perspective of the issuer contains a contractual obligation to deliver cash and a call option.
E. None of the given answers.