The following facts apply to a convertible bond making semiannual payments $32/share 6.5% $1,000 Conversion...
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The following facts apply to a convertible bond making semiannual payments $32/share 6.5% $1,000 Conversion price Coupon rate Par value Yield on nonconvertible debentures of same quality Maturity Market price of stock 9.5% 10 years $27 Ishare What is the minimum price at which the convertible should sell? Multiple Choice $1,000.00 $310.00 $926.88 $909.04 $84375 A put option that expires in seven months with an exercise price of $44 sells for $3.97 The stock is currently priced at $47, and the risk-free rate is 42 percent per year, compounded continuously. What is the price of a call option with the same exercise price? Multiple Choice $.09 $7.41 $773 $8.03 $8.36 Mart
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