Multiple Choice
A convertible bond has an option value which is equal to:
A) the market value of the convertible bond minus the straight bond value.
B) the market value of the convertible bond minus the conversion value.
C) the market value of the convertible bond minus the conversion premium.
D) the market value of the convertible bond minus the maximum of the straight bond value or
Conversion value.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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