A beneficial conversion option is an option to convert the debt to equity that is considered to be in the money.

Name: A beneficial conversion option is an option to convert the debt to equity that is considered to be in the money.
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Question

Quizplus · Accepted Answer

A beneficial conversion option is considered "in the money" because it allows the holder to convert debt into equity at a conversion price that is lower than the current market price of the equity, providing an immediate financial benefit.

A Beneficial Conversion Option Is an Option to Convert the Debt