NO.PZ202504240100011201
问题如下：
With respect to corporate actions, Pereira is most likely correct regarding:
选项：
A.Action 1.
B.Action 2.
C.Action 3.
解释：
Solution
-
A is correct. Pereira has correctly identified “change of control” as an action that could negatively affect an investor and explained how it is typically mitigated in convertible bond contracts with change of control conversion prices and change of control put options.
-
B is incorrect. Although Pereira has correctly identified stock splits, stock dividends, and cash dividends as actions that could harm investors, he has not correctly described how cash dividends are treated. Convertible bonds typically set a threshold amount and a cash dividend below the threshold would have no impact on the conversion price.
-
C is incorrect. Although Pereira has correctly identified exercise of an embedded call option as an action that could harm investors, he has not described a key reason an issuer would call a convertible bond. Issuers typically would call a convertible bond when the underlying share price exceeds the conversion price to “force” the investor to convert and thereby would avoid paying further coupon payments.
- describe defining features of a convertible bond
可以解释一下这三个选项是什么意思么
