Cheung Zap Inc. just issued 17-year convertible bonds at a par value of $1,000. At any time before maturity, investors have the option to exchange their bonds for shares of Cheungs common stock at a conversion price of $60.48. Cheungs convertible bonds pay a 7.56% annual coupon, but if Cheung had issued straight-debt bonds (no conversion), it would have had to pay 12.60% annual interest. what is the value of the convertible option?

653.20

346.80

369.25

156.65