Question $9$

Question ID: $1550521$

An investor owns $100$ shares of the $4\%$ $$80$ par convertible, callable, cumulative preferred stock issued by HBH Creations. With a conversion price of $$20$ and a current market price of $$84,$ HBH issues a call of all of the outstanding preferred shares at $$82.$If the HBH Creations common stock is currently selling at $$18$ per share, what is likely the wisest choice for the investor?

A$)$ Accept the call at $$82$

B$)$ Convert the preferred into the common at the stated conversion rate

C$)$ Sell the preferred stock

D$)$ Hold on to the preferred stock