is convertable any time before it matues 1 anes of ock The ock tha it may be converted into is cunundy xling for S12 1 kwest price dis bond could be selling for right mow bond issuc worth $40 billion It has no coants They docid to inouc a new series of bonds, also woeth $40 billion, but the new boads ae seaioto their first issue How dees this make the first boodholders wose ol E4 Stockholder-Bondholder Coeflict. Sapose Wal-Mart eds have noo cmants How would Wal Mart boodolders e at iWallmutsectedly merge with Ameristar Casino Ine. higher neoum peojects. In what sense is the return tbey gt e ES-6 Call Options What would you eam whe yon evencise a call optione that you bought for a pecmium of $2 per shuare and a ske price of $35 per share if dhe price of the underlying stock was $47 per share on the opece's espion date ES-7. Put OptionsWhat would you carn on a put oce wih a strike price o $20 per share if the underlying slock was selling for $23 per share on espiration day? As- sume the prcmium you paid on this pat opon was 51 per there are two hanic positions that you put, the other using a call. What are they ES-9. Convertibility and the Stockholder-Bondholder Cooflict. I Wal-Mart's bonds were converuble into sock how would the boooders be able to benefit from the merger with Ameristar Casino Inc ES-10. Real Options make during the bencfits period called open cnnllnent to angment their bealth insarance for a year Sappose you typically doet dl imarance as a regalar benclit but you can add it in any ycar for an adisonal cont ing the haeic lencts of opsons, is dures? Explain A well-know s rcal opon is te docision that some people