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NIK issued convertible bonds that can be converted into 20 shares of common stock. The par value of these bonds is $1,000 and the current
NIK issued convertible bonds that can be converted into 20 shares of common stock. The par value of these bonds is $1,000 and the current market price of NIK stock is $45. If the convertible bonds of NIK are trading in the market for $850, how much can an investor earn from arbitrage trade?
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