- Why in q no 17 in afvalternoon session the floor value is straight value+ call value ?
should it not be only straight value ?
there is still the posibility that the stock will rocket up and you will convert your bond to shares. So there is still some value (albeit little) in the implied call option attached to bond.
where is it written in book? which page man
Q. 49 afternoon session-
Why depreciation of 25k not reduced from SGA
regarding conv. bonds, they say that a convertible bond is like a bond with a call option attached, therefore that call should always be included in any valuation.
Regardging the depreciation, I asked this same question a couple days ago, look at my history to find the answer.
what was your score breakdown by the way Vicky
Clever i am analysing wrong answers then will post breakup
Please post link to that depreciation query
ALso in q no 9 in morning where the hell is interesat rate to calculate forward price
cLEVER please explain last case study on equity in morning session
its a killer 