Question
An investor buys a $1,000 face value convertible bond for $937.50. The bond can be converted into 150 shares of stock. The stock is currently
An investor buys a $1,000 face value convertible bond for $937.50. The bond can be converted into 150 shares of stock. The stock is currently priced at $5.25.
At what minimum stock price would a rational investor be willing to convert?
A. $6.25
B. $6.50
C. $6.66
D. $5.25
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An Introduction To Trading In The Financial Markets Market Basics
Authors: R. Tee Williams
1st Edition
0123748380, 9780123748386
