What is the difference between a soft put and a hard put?
What will be an ideal response?
Along with the conversion privilege granted to the bondholder, most convertible bonds are callable at the option of the issuer. Some convertible bonds are putable. Put options can be classified as hard puts and soft puts. For a soft put, the issuer has the option to redeem the convertible security for cash, common stock, subordinated notes, or a combination of the three. A hard put is one where the convertible security must be redeemed by the issuer only for cash.
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Audience members typically decide which of the following during the preview of a presentation?
What will be an ideal response?
Dave and Tammy are both employed but are eligible to contribute to a traditional IRA. If they each contribute $5,500 to their respective accounts, how much federal income tax will they save if they are in the 30% marginal tax bracket?
A) $3,300 B) $3,000 C) $1,650 D) $ 0, since contributions to a traditional IRA are not deductible from income for federal income tax.