Simple Valuation: Bond Floor + Call Option (Black-Scholes)
This lesson is part of the course
In this lesson
You value Norrow’s conversion option with Black-Scholes, add it to the bond floor and see whether the bond trades rich or cheap.
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Lessons in this course
- Conversion Ratio, Conversion Price & Parity Locked
- Conversion Premium, Income Advantage & Payback Locked
- The Bond Floor: Straight-Bond Value with PV and PRICE Locked
- Investment Premium & the Payoff Profile across Share Prices Locked
- Simple Valuation: Bond Floor + Call Option (Black-Scholes) Locked
- Issuer View: Cost vs Straight Debt & the Liability/Equity Split Locked
- Dilution & If-Converted EPS Locked
- Call & Put Features and Forced Conversion Locked