The software giant, Kludge Systems, has issued a bond that gives the holder the choice between USD

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The software giant, Kludge Systems, has issued a bond that gives the holder the choice between USD 10,000, NZD 20,000, and GBP 5,000. Can Kludge's bond be replicated using simple options?

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International Finance Putting Theory Into Practice

ISBN: 978-0691136677

1st edition

Authors: Piet Sercu

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Question Posted: Aug 07, 2017 09:44 AM

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The software giant, Kludge Systems, has issued a bond that gives the holder the choice between USD

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No It is tempting to say that you have for instance a USDT 10000 bond plus a call on NZDT 20000 ...View the full answer

International Finance Putting Theory Into Practice

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