What Is the Minimum Value of the Call Option on a Convertible

question 58

Multiple Choice

What is the minimum value of the call option on a convertible bond with a conversion ratio of 30 if the bond offers a 9% coupon, has 10 years until maturity and market interest rates are 9% for comparable bonds? The stock is currently priced at 35.

• A)$0
• B)$5
• C)$50
• D)$65

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Definitions:

Orgasm

A peak of sexual pleasure characterized by intense sensations and involuntary muscle contractions in the body.

Sexual Arousal

A state of both physical and mental alertness and eagerness for sexual engagement, characterized by an awareness of sexual attraction.

Plateau Phase

In human sexual response, the stage characterized by the intensification of sexual pleasure and the stabilization of physiological arousal.

Excitement Peaks

Moments of heightened arousal and interest, typically characterized by increased heart rate, enthusiasm, and energy levels.