Question
A convertible bond is sold for $900 whole the straight value of the bond is $700. The conversion ratio of the bond is 40 and
A convertible bond is sold for $900 whole the straight value of the bond is $700. The conversion ratio of the bond is 40 and its delta is 0.50. If the price of the underlying stock drops $5 per share, what is the approximate new value of the convertible bond?
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Hedge Fund Risk Fundamentals
Authors: Richard Horwitz
1st Edition
8130911248, 978-8130911243
