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1. Define convertible arbitrage. 2. Compute the value of a convertible bond. 3. Discuss the risks involved in a long position of a convertible bond.

1. Define convertible arbitrage.

2. Compute the value of a convertible bond.

3. Discuss the risks involved in a long position of a convertible bond.

4. Explain how to hedge the risks in a long position of a convertible bond.

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