题目
The option-adjusted duration of a convertible bond will be close to the duration of a straight bond, which is similar in all other respects, when the:
选项
A.Stock price is extremely low.
B.Stock price is extremely high.
C.Interest rates are extremely low.
D.Interest rate volatility is extremely high.
答案
A
解析
When the stock price is extremely low, the option to convert is likely to have little value, and the convertible bond will trade effectively as a straight bond.当股票价格极低时，转换期权的价值可能很小，可转换债券将作为直接债券有效交易。