Suppose that the price of the underlying stock for aconvertible bond is considerably higher than theconversion price.

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Suppose that the price of the underlying stock for aconvertible bond is considerably higher than theconversion price. What would expect that convertiblebond’s delta to be?

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Bond Markets Analysis and Strategies

ISBN: 978-0133796773

9th edition

Authors: Frank J.Fabozzi

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Question Posted: Aug 22, 2015 07:42 AM

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Suppose that the price of the underlying stock for aconvertible bond is considerably higher than theconversion price.

Question:

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Delta ranges from 0 to 1 The delta can help describe the character of the convertible bond At one ...View the full answer

Bond Markets Analysis and Strategies

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