Which of the following statements is FALSE?
A) A convertible bond can be thought of as a regular bond plus a special type of call option called a warrant.
B) On the maturity date of the bond, the strike price of the embedded warrant in a convertible bond is equal to the face value of the bond divided by the conversion ratio—that is, the conversion price.
C) Calling a convertible bond transfers the remaining time value of the conversion option from shareholders to bondholders.
D) If the stock price is low so that the embedded warrant 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.
Answer: C
You might also like to view...
As with other types of marketers, a primary goal in wholesaling is to ________
A) match competitors' strategies B) establish a greater number of locations C) build value-adding customer relationships D) hold prices constant E) maintain the status quo
In business, which of the following describes communication with people who rank below you?
A. Upward communication B. Lateral communication C. Downward communication D. Horizontal communication
The systematic approach to training involves needs assessment, program design, implementation, and evaluation.
Answer the following statement true (T) or false (F)
In operations and supply chain environments that must deal with random demand and variable processing time, it is virtually impossible to achieve very high capacity utilization levels and still provide acceptable customer service
Indicate whether the statement is true or false.