CFA Volume 5. Pg. 34 & pg. 37.

On top of page 34 CFAI states “the current conversion price is the current stock price times the conversion ratio”

Then, in example 7 on page 37 in the solution to #2, it states that the conversion price is $24, or $1,200/50. (Current convertible bond price of $1,200 and conversion ratio of 50). In this problem, the stock price is given as $30, so why wouldn’t the conversion price be 50 * $30 = $1,500 ?

Any insights into this would be great, i just can’t seem to figure it out. I think the CFA has really messed up with convertible terminology from L2 -> L3. In L2, it was taught that conversion price = conversion ratio * strike, while the conversion value = conversion ratio * current stock price. Really need some clarification here. TIA.