Question 2 Question ID: 1558030 One of your customers owns 10HBH...

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Accounting

Question 2
Question ID: 1558030
One of your customers owns 10HBH Creations 4.5% convertible callable debentures. The conversion price into HBH common stock is $40. With the current market price of the HBH Creations stock at $44, the company publishes a notice that all of the debentures will be called in thirty days at a price of 104. When the customer calls for your advice, you would probably recommend
A) accepting the call.
B) selling the stock.
C) exercising the conversion privilege.
D) selling the debenture.
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