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3. A dealer holds a convertible bond currently with a market price of 100 1/4. The bond was issued convertible to 40 shares of stock

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3. A dealer holds a convertible bond currently with a market price of 100 1/4. The bond was issued convertible to 40 shares of stock ABC. Currently the market price of the stock is $22 per share. a) Should the dealer keep holding the bond or he/she should convert to the stock? b) What is the Parity Price of the Stock if the bond's value is 101? c) What is the Parity Price of the Bond if the stock trades at $30

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