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8. Which one of the following is a true statement? A. Exercise of listed call op

ID: 2697972 • Letter: 8

Question

8. Which one of the following is a true statement? A. Exercise of listed call options results in more outstanding shares of stock, while exercise of warrants does not. B. A convertible bond consists of a straight bond plus a specified number of detachable warrants. C. A callable bond can be retired by bond investors. D. Warrants are issued by the underlying asset company. 8. Which one of the following is a true statement? A. Exercise of listed call options results in more outstanding shares of stock, while exercise of warrants does not. B. A convertible bond consists of a straight bond plus a specified number of detachable warrants. C. A callable bond can be retired by bond investors. D. Warrants are issued by the underlying asset company.

Explanation / Answer

A convertible bond consists of a straight bond plus a specified number of detachable warrants.