Exam 24: Options and Corporate Finance

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A convertible bond has a face value of $1,000 and a conversion price of $12.50.The bond has a 6 percent coupon,pays interest semi-annually,and matures in 12 years.Similar bonds are yielding 9 percent.The current price of the stock is $13.40 per share.What is the straight bond value?

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You own a July $15 call on ABC stock.Assume today is April 20 and the call has zero intrinsic value.Which one of the following best describes this option?

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The Sarbanes-Oxley Act of 2002 requires firms to report ESO grants within how many days of the grant?

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Felicia purchased an option which she can exercise anytime within the next six months.Which type of option did she purchase?

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Julie opted to exercise her August option on June 20th and as a result received $2,500 for the sale of her shares.Which one of the following did Julie own?

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Which of the following grants its owner the right to purchase an asset at a stated price? I.American call II.European call III.American put IV.European put

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