Suppose that a bond issued by XXX Corporation is convertible into 30 shares of common stock. The
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Suppose that a bond issued by XXX Corporation is convertible into 30 shares of common stock. The delta of this bond is 0.77. Explain how to create a long position in the XXX convertible bond that is delta neutral.
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To create a deltaneutral position in the XXX Corporation convertible bond you would need to combine ...View the full answer
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Related Book For
Introduction To Fixed Income Analytics
ISBN: 9780470572139
2nd Edition
Authors: Steven V. Mann, Frank J. Fabozzi
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