You have purchased a 10,000 annual convertible bond attached with 5,000 option on Jan 1, 2020.The option
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You have purchased a 10,000 annual convertible bond attached with 5,000 option on Jan 1, 2020.The option price is $2 each and allows you to sell XYZ share at 20/share on March 30. The bond can be converted into 12,000 common shares annually. Coupon rate of the bond is 10% p a.
On March 30, the spot price of the share is 17/share. Make a decision of exercising or not exercising the option on march 30.
Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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