Which of the following statements is false? 1. A convertible bond can be thought of as a regular bond plus a special type of call option. 2. On the maturity date of the bond, the strike price of the embedded call in a convertible bond is equal to the face value of the bond divided by the conversion ratiothat is, the conversion price. 3. Calling a convertible bond transfers the remaining time value of the conversion option from shareholders to bondholders. 4. If the stock price is low so that the embedded call is deep out-of-the-money, the conversion provision is not worth much and the bond s value is close to the value of a straight bond-an otherwise identical bond without the conversion provision