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.
C
Explanation: C) Calling a convertible bond transfers the remaining time value of the conversion option from bondholders to shareholders.
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Individuals must be mentioned by name in order to be covered under insurance contracts.
a. true b. false
Which of the following statements is true?
A) The average profiles for profitable high-share and profitable low-share businesses are almost identical. B) A low-share business with above-average customer value is more profitable than a high-share business with below-average customer value. C) A low-share niche business's prices are slightly above the average relative price index of 100. D) Profitable low-share niche businesses tend to have a wide product breadth. E) Profitable low-share niche businesses tend to spend more on advertising relative to the competition.