Conversion premiums are influenced heavily by expectations of future share price performance.

Name: Conversion premiums are influenced heavily by expectations of future share price performance.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Conversion premiums represent the additional cost investors pay for the option to convert a convertible security into the underlying stock. The higher the expectations of future share price performance, the higher the conversion premium will be.

Conversion Premiums Are Influenced Heavily by Expectations of Future Share