Some more "traditional" assets have option-like features; some of these instruments include
A) callable bonds.
B) convertible bonds.
C) warrants.
D) callable bonds and convertible bonds.
E) All of the options are correct.

Question

Quizplus · Accepted Answer

All the options listed (callable bonds, convertible bonds, and warrants) have option-like features. Callable bonds allow the issuer to repurchase the bond before maturity, convertible bonds can be converted into a predetermined number of shares of the issuing company, and warrants give the holder the right to purchase the company's stock at a specified price before the warrant expires.

Some More "Traditional" Assets Have Option-Like Features; Some of These