Which of the Following Statements Is FALSE

Multiple Choice

Which of the following statements is FALSE?

A) If the stock price is low so that the embedded warrant is deep out-of-the-money, the conversion provision is not worth much and the bond's value is close to the value of a straight
Bond- an otherwise identical bond without the conversion provision.
B) Calling a convertible bond transfers the remaining time value of the conversion option from shareholders to bondholders.
C) A convertible bond can be thought of as a regular bond plus a special type of call option called a warrant.
D) On the maturity date of the bond, the strike price of the embedded warrant in a convertible bond is equal to the face value of the bond divided by the conversion ratio- that is, the conversion price.