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Consider the following 2 bonds. Bond Type A Convertible bond with a conversion ratio of 20 B Identical to A except that it does not

Consider the following 2 bonds.

Bond Type
A Convertible bond with a conversion ratio of 20
B Identical to A except that it does not include a conversion option

The value of bond A is equal to the value of bond B _______ .

Group of answer choices

plus the value of a put option on the underlying common stock.

minus the value of a call option on the underlying common stock.

plus the value of a call option on the underlying common stock.

minus the value of a put option on the underlying common stock.

With the same information as in the question above, the minimum value of bond A is equal to the ______ . Group of answer choices

the max of the current value of bond B and the value of the call option on the underlying common stock.

the min of the conversion value of bond A and the value of the call option on the underlying common stock.

the max of the conversion value of bond A and the value of the call option on the underlying common stock.

the max of the conversion value of bond A and the current value of bond B.

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