What is the best way to price these using xl?
=CVTbond![(how much?)]
Geez - I don’t know I use really pricey software.
I figured you would JD… Basically pull info from Bloomberg and price the bond and then the warrant and try and find a pricing discrepancy…I know this is very dirty but will give a general idea… JD are you using Stochastic bs or Binomial trees or Monte sims or???
A quick google search bring up these examples. http://www.mngt.waikato.ac.nz/kurt/frontpage/ModelMainpages/FixedIncomeModels.htm Maybe a good place to start.