Investments
Investments
11th Edition
ISBN: 9781259277177
Author: Zvi Bodie Professor, Alex Kane, Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 21, Problem 42PS
Summary Introduction

To explain: Effect on the hedge ratio of convertible bond when stock prices increases rapidly.

Introduction: Convertible bonds are used to convert the predefined quantity of stocks of a company at a post date. The bond conversion becomes essential when the prices are increasing.

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