Which of the following best defines a straight bond value?

A) The lower bound of an option's value, or what the option would be worth if it were about to expire.
B) A contract that gives its owner the right to buy or sell some asset at a fixed price on or before a given date.
C) The value of a convertible bond if it could not be converted into common stock.
D) The right to sell an asset at a fixed price during a particular period of time. The opposite of a call option.
E) An option with payoffs in real goods.

Straight Bond Value

The value of a bond that pays a fixed interest rate (coupon rate) and does not have any embedded options such as convertibility or callability.

Convertible Bond

A bond that offers the option to be exchanged for a specific quantity of the issuing company's stock at chosen intervals throughout its tenure, generally at the choice of the person holding the bond.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a certain period.