When a company issues convertible bonds with a $1,000 par value that can be converted to 20 shares of common stock, each bond includes:
A) a put option with an exercise price of $200 per share.
B) a call option with an exercise price of $50 per share.
C) a put option with an exercise price of $20 per share.
D) a call option with an exercise price of $20 per share
Correct Answer:
Verified
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