A Convertible Bond Has a Par Value of $1,000 and a Current

Multiple Choice

A convertible bond has a par value of $1,000 and a current market value of $1,150. The current price of the issuing firm's stock is $65, and the conversion ratio is 15 shares. The bond's conversion premium is

A) $40.
B) $150.
C) $175.
D) $200.