A Convertible Note May Be Accurately Described As

A convertible note may be accurately described as:

A) a derivative financial instrument that affords the holder a stream of cash flows and benefits associated with being a shareholder but transfers the risk to the holders of the convertible options.
B) a secondary financial instrument that from the perspective of the issuer contains a contractual obligation to deliver cash and a put option.
C) a simple financial instrument that affords the holder access to a stream of cash flows in the form of either dividends or interest payments.
D) a compound financial instrument that from the perspective of the issuer contains a contractual obligation to deliver cash and a call option.

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