The correct answer is: C. warrants
A warrant is a security that gives the holder the right, but not the obligation, to buy a specified number of shares of a company’s stock at a specified price on or before a specified date. Warrants are often issued as part of a bond offering, and they can be used to make the bonds more attractive to investors.
A provision is a clause in a contract that sets forth the rights and obligations of the parties involved. A guarantee is a promise to pay off a debt or fulfill an obligation if the original debtor fails to do so. A convertible is a security that can be converted into another security, such as a stock or a bond.
In the context of the question, the type of option that permits bond holder to buy stocks at stated price is a warrant. Warrants are often issued as part of a bond offering, and they can be used to make the bonds more attractive to investors.