profit

NO.PZ2023010407000010 问题如下 Johnson researa convertible arbitrage strategy annalyzes transactions involving Acompany stocks anconvertible bon.Ancolleselecteta for Acompany, shown in Exhibit 1Exhibit 1 Baseon comparisons with instry ratios, Johnson believes ththe relative value of ABC's stois overvalue while convertible bon are unrvalue Anbelieve the potentiprofit outcomes of a long position in the convertible boncombinewith a short stoposition,assuming ththe stoprichanges very little, ignoring vin anborrowing costs. He came to the following conclusions:\"Regaress of whether ABC's share priis falling or rising, the profit of a convertible arbitrage transaction is the same.\"Johnson’s conclusion about the profitability of the Aconvertible arbitrage tra is: A.Corre B.incorrect, because the profit will higher if the share pricreases C.incorrect, because if the stopririses, the profit will higher A is correct. Theclassic convertible bonarbitrage strategy is to buy the relativelyunrvalueconvertible bonantake a short position in the relativelyovervalueunrlying stock. If the convertible bons current priis nearthe conversion value, then the combination of a long convertible anshortequity lta exposure will create a situation where for small changes in theshare prianignoring vin anborrowing costs, the profit/loss will bethe same. The current conversion priof the Aconvertible bonis € 1000×(120/100)/50=€24, anthe current AVC sharepriis €29. Thus, purchasing the convertible bon selling short theshares, exercising the conversion option, anselling the shares the currentmarket price, a profit of €5 clockein regaress of changes in theshare price. The following table monstrates this result showing the sametra profit of €5 for three fferent stoprices:whereLong stovia convertible bonprofit = New share pri– Current conversion priceShort stoprofit = Current share pri– New share priceTotprofit = Long stovia convertible bonprofit + Short stoprofitThus, regaress of the share price, the totprofit on the convertible arbitrage tra is €5B is incorrebecause if the convertible bons current priis nethe conversion value, then the combination of a long convertible anshort equity lta exposure will create a situation where the profit/loss will the same (not higher if the share pricreases).C is incorrebecause if the convertible bons current priis nethe conversion value, then the combination of a long convertible anshort equity lta exposure will create a situation where for small changes in equity price, the profit/loss will the same (not higher if the share priincreases). 如果股价低于了$24，这个时候可转债不会转股，而 short stock的头寸会超过$5，所以在股价下跌的时候，arbitrage的profit会更高麻烦老师看一下，为什么这种理解有问题呢？

NO.PZ2023010407000010 问题如下 Johnson researa convertible arbitrage strategy annalyzes transactions involving Acompany stocks anconvertible bon.Ancolleselecteta for Acompany, shown in Exhibit 1Exhibit 1 Baseon comparisons with instry ratios, Johnson believes ththe relative value of ABC's stois overvalue while convertible bon are unrvalue Anbelieve the potentiprofit outcomes of a long position in the convertible boncombinewith a short stoposition,assuming ththe stoprichanges very little, ignoring vin anborrowing costs. He came to the following conclusions:\"Regaress of whether ABC's share priis falling or rising, the profit of a convertible arbitrage transaction is the same.\"Johnson’s conclusion about the profitability of the Aconvertible arbitrage tra is: A.Corre B.incorrect, because the profit will higher if the share pricreases C.incorrect, because if the stopririses, the profit will higher A is correct. Theclassic convertible bonarbitrage strategy is to buy the relativelyunrvalueconvertible bonantake a short position in the relativelyovervalueunrlying stock. If the convertible bons current priis nearthe conversion value, then the combination of a long convertible anshortequity lta exposure will create a situation where for small changes in theshare prianignoring vin anborrowing costs, the profit/loss will bethe same. The current conversion priof the Aconvertible bonis € 1000×(120/100)/50=€24, anthe current AVC sharepriis €29. Thus, purchasing the convertible bon selling short theshares, exercising the conversion option, anselling the shares the currentmarket price, a profit of €5 clockein regaress of changes in theshare price. The following table monstrates this result showing the sametra profit of €5 for three fferent stoprices:whereLong stovia convertible bonprofit = New share pri– Current conversion priceShort stoprofit = Current share pri– New share priceTotprofit = Long stovia convertible bonprofit + Short stoprofitThus, regaress of the share price, the totprofit on the convertible arbitrage tra is €5B is incorrebecause if the convertible bons current priis nethe conversion value, then the combination of a long convertible anshort equity lta exposure will create a situation where the profit/loss will the same (not higher if the share pricreases).C is incorrebecause if the convertible bons current priis nethe conversion value, then the combination of a long convertible anshort equity lta exposure will create a situation where for small changes in equity price, the profit/loss will the same (not higher if the share priincreases). convertible bonarbitrage的payoff不是等于long put吗，pricreases，payoff increases

NO.PZ2023010407000010 问题如下 Johnson researa convertible arbitrage strategy annalyzes transactions involving Acompany stocks anconvertible bon.Ancolleselecteta for Acompany, shown in Exhibit 1Exhibit 1 Baseon comparisons with instry ratios, Johnson believes ththe relative value of ABC's stois overvalue while convertible bon are unrvalue Anbelieve the potentiprofit outcomes of a long position in the convertible boncombinewith a short stoposition,assuming ththe stoprichanges very little, ignoring vin anborrowing costs. He came to the following conclusions:\"Regaress of whether ABC's share priis falling or rising, the profit of a convertible arbitrage transaction is the same.\"Johnson’s conclusion about the profitability of the Aconvertible arbitrage tra is: A.Corre B.incorrect, because the profit will higher if the share pricreases C.incorrect, because if the stopririses, the profit will higher A is correct. Theclassic convertible bonarbitrage strategy is to buy the relativelyunrvalueconvertible bonantake a short position in the relativelyovervalueunrlying stock. If the convertible bons current priis nearthe conversion value, then the combination of a long convertible anshortequity lta exposure will create a situation where for small changes in theshare prianignoring vin anborrowing costs, the profit/loss will bethe same. The current conversion priof the Aconvertible bonis € 1000×(120/100)/50=€24, anthe current AVC sharepriis €29. Thus, purchasing the convertible bon selling short theshares, exercising the conversion option, anselling the shares the currentmarket price, a profit of €5 clockein regaress of changes in theshare price. The following table monstrates this result showing the sametra profit of €5 for three fferent stoprices:whereLong stovia convertible bonprofit = New share pri– Current conversion priceShort stoprofit = Current share pri– New share priceTotprofit = Long stovia convertible bonprofit + Short stoprofitThus, regaress of the share price, the totprofit on the convertible arbitrage tra is €5B is incorrebecause if the convertible bons current priis nethe conversion value, then the combination of a long convertible anshort equity lta exposure will create a situation where the profit/loss will the same (not higher if the share pricreases).C is incorrebecause if the convertible bons current priis nethe conversion value, then the combination of a long convertible anshort equity lta exposure will create a situation where for small changes in equity price, the profit/loss will the same (not higher if the share priincreases). Long stovia convertible bonprofit = New share pri– Current conversion priceShort stoprofit = Current share pri– New share priceTotprofit = Long stovia convertible bonprofit + Short stoprofit= Current share price-Current conversion price这两个Current在当前时点就已经是确定的，是不是就说明无论未来股价怎么变动，这个策略的profit就是恒定的，就等于当前股价与当前可转债转换价格的差额？

NO.PZ2023010407000010 问题如下 Johnson researa convertible arbitrage strategy annalyzes transactions involving Acompany stocks anconvertible bon.Ancolleselecteta for Acompany, shown in Exhibit 1Exhibit 1 Baseon comparisons with instry ratios, Johnson believes ththe relative value of ABC's stois overvalue while convertible bon are unrvalue Anbelieve the potentiprofit outcomes of a long position in the convertible boncombinewith a short stoposition,assuming ththe stoprichanges very little, ignoring vin anborrowing costs. He came to the following conclusions:\"Regaress of whether ABC's share priis falling or rising, the profit of a convertible arbitrage transaction is the same.\"Johnson’s conclusion about the profitability of the Aconvertible arbitrage tra is: A.Corre B.incorrect, because the profit will higher if the share pricreases C.incorrect, because if the stopririses, the profit will higher A is correct. Theclassic convertible bonarbitrage strategy is to buy the relativelyunrvalueconvertible bonantake a short position in the relativelyovervalueunrlying stock. If the convertible bons current priis nearthe conversion value, then the combination of a long convertible anshortequity lta exposure will create a situation where for small changes in theshare prianignoring vin anborrowing costs, the profit/loss will bethe same. The current conversion priof the Aconvertible bonis € 1000×(120/100)/50=€24, anthe current AVC sharepriis €29. Thus, purchasing the convertible bon selling short theshares, exercising the conversion option, anselling the shares the currentmarket price, a profit of €5 clockein regaress of changes in theshare price. The following table monstrates this result showing the sametra profit of €5 for three fferent stoprices:whereLong stovia convertible bonprofit = New share pri– Current conversion priceShort stoprofit = Current share pri– New share priceTotprofit = Long stovia convertible bonprofit + Short stoprofitThus, regaress of the share price, the totprofit on the convertible arbitrage tra is €5B is incorrebecause if the convertible bons current priis nethe conversion value, then the combination of a long convertible anshort equity lta exposure will create a situation where the profit/loss will the same (not higher if the share pricreases).C is incorrebecause if the convertible bons current priis nethe conversion value, then the combination of a long convertible anshort equity lta exposure will create a situation where for small changes in equity price, the profit/loss will the same (not higher if the share priincreases). € 1000×(120/100)/50=€24，这个计算方法怎么用语言表达出逻辑？120/100是每p价格？为什么再乘以1000？再除以50，是换算成债转股后的股价？