The feature of a corporate bond that gives the lender the right to sell the bond

Question

The feature of a corporate bond that gives the lender the right to sell the bond to the borrower in the event of a change in the corporate control or a downgrading of the bond rating is ceiling. poison call. poison put. collar. sinking fund. An European -type call option written on a stock has an expiry date in 3 months. The current stock price = $50, exercise price = $45, risk-free rate = 6%; variance = 0.2. (Using the Black-Scholes Formula, the value of this call option is $4.72 $4.93 $5.00. $7.62

Explanation / Answer

Part 1 question No 2

B .Poison Put

Poison puts are a type of poison pill defense in which bondholders are provided with the option of obtaining repayment in the event that a hostile takeover occurs before the bond's maturity date. The right of early repayment is written in the bond's covenant, with the takeover representing the trigger event.

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