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The following facts apply to a convertible bond making semiannual payments: Conversion price Coupon rate Par value Yield on nonconvertible debentures of same quality Maturity

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The following facts apply to a convertible bond making semiannual payments: Conversion price Coupon rate Par value Yield on nonconvertible debentures of same quality Maturity Market price of stock $ 49/share 4.6% $1,000 5% 30 years $ 48/share What is the minimum price at which the convertible should sell? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Minimum price Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $47. Calls Puts Option Macrosoft Strike Expiration Price Feb 48 Mar May 48 Aug 48 Vol. 105 81 42 23 Last 2.23 2.47 2.75 2.96 Vol. 60 42 31 23 Last 3.23 3.64 4.06 4.10 48 a. Suppose you buy 30 contracts of the February 48 call option. How much will you pay, ignoring commissions? Cost

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