Which of the following best defines a convertible bond?

• A bond that can be exchanged for a fixed number of shares of stock for a specified amount of time.
• An option granted to an employee by a company giving the employee the right to buy shares of stock in the company at a fixed price for a fixed time
• An option that can be exercised only on the expiration date.
• The last day on which an option can be exercised.
• The act of buying or selling the underlying asset via the option contract.