A ________ allows a firm to force conversion.
A) warrant
B) option
C) call feature
D) striking price

Question

Quizplus · Accepted Answer

A call feature allows a firm to force conversion of a bond at a predetermined price before its maturity date. Warrants and options are similar to call features, but they typically allow the holder, not the issuer, to exercise the right to purchase or sell at a predetermined price. The striking price is the price at which the option or warrant can be exercised.

A ________ Allows a Firm to Force Conversion