Tiger Inc. has a bond issue that is currently selling in the market for $960. The conversion ratio of each bond is 18. The convertible bond has a 4.9 percent coupon, payable semi- annually. Similar nonconvertible bonds are priced to yield 7.4 percent. While the bond's par value is $1,000, its maturity is 20 years. Tiger's stock sells for $45 per share. What is the option value of the bond? 1) $68.80 2) $204.85 3) $150 4) $68.85 5) $218.78