Why do companies issue convertible securities

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Reference no: EM131334919

1. How does a stock's expected price volatility affect the value of a call option on it?

2. In what ways are convertible securities and warrants similar? Dissimilar?

3. Why do companies issue convertible securities?

4. What is the relationship between conversion value, bond value, and market value for a convertible security?

Reference no: EM131334919

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