Chartered Financial Analyst Level 2
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The value of a callable convertible bond equals the value of the straight bond:
A
plus the value of the call option on the issuer's stock plus the value of the issuer call option.
B
plus the value of the call option on the issuer's stock minus the value of the issuer call option.
C
minus the value of the call option on the issuer's stock minus the value of the issuer call option.