8. Attach a knockout barrier at some percentage above the current common stock price such that the...
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8. Attach a knockout barrier at some percentage above the current common stock price such that the put disappears if the price reaches the barrier. Now you have introduced an additional degree of freedom and you can increase the dividend, the cap, or the floor.
Whatever you do, the price of the Percs should still equal the price of the common. Use the knockout sheet of the Financial Options Calculator.
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Related Book For
Valuation Mergers Buyouts And Restructuring
ISBN: 9780470128893
2nd Edition
Authors: Enrique R. Arzac
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