Using the assumptions of Example 16.4, and the stock price derived in Example 16.5 suppose you were

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Using the assumptions of Example 16.4, and the stock price derived in Example 16.5 suppose you were to perform a "naive" valuation of the convertible as a risk free bond plus 50 call options on the stock. How does the price you compute compare with that computed in Example 16.5?
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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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