Finance help.........

Chapter 13 Problem 1 (Page 360)

A convertible bond has a face value of $1,000, and the conversion price is $50 per share. The stock is selling at $42 per share. The bond pays $60 per year interest and is selling in the market for $930. It matures in 15 years. Market rates are 10 percent per year.

· a. What is the conversion ratio?

· b. What is the conversion value?

· c. What is the conversion premium (in dollars and percent)?

· d. What is the floor value or pure bond value?

Chapter 14 Problem 3 (Page 381 - 82)

Assume a stock is selling for $66.75 with options available at 60, 65, and 70 strike prices. The 65 call option price is at $4.50.

· a. What is the intrinsic value of the 65 call?

· b. Is the 65 call in the money?

· c. What is the speculative premium on the 65 call option?

· d. What percentage does the speculative premium represent of common stock price?

· e. Are the 60 and 70 call options in the money?

Chapter 15 Problem 3 (Page 411 - 12)

Sterling Jones purchases a 5,000-troy ounce contract on silver at $13.00 an ounce. At the same time he purchases a 112,000 pound sugar contract at 0.191 cents a pound. If the price of silver goes down to $12.94 at the same time the price of sugar goes up to 0.196 cents, will Sterling have an overall net gain or loss?