彼得羅斯公司理財cap(2)(存儲版)
【正文】 d. McGrawHill/Irwin 241 Key Concepts and Skills ? Understand how warrants and convertible bonds are similar to call options ? Understand how warrants and convertible bonds differ from call options ? Understand why corporations would issue either warrants or convertible bonds 242 Chapter Outline Warrants The Difference between Warrants and Call Options Warrant Pricing and the BlackScholes Model Convertible Bonds The Value of Convertible Bonds Reasons for Issuing Warrants and Convertibles Why are Warrants and Convertibles Issued? Conversion Policy 243 Warrants ? Warrants are call options that give the holder the right, but not the obligation, to buy shares of mon stock directly from a pany at a fixed price for a given period of time. ? Warrants tend to have longer maturity periods than exchange traded options. ? Warrants are generally issued with privately placed bonds as an “equity kicker.” ? Warrants are also bined with new issues of mon stock and preferred stock and/or given to investment bankers as pensation for underwriting services. ? In this case, they are often referred to as a Green Shoe Option. 244 Warrants ? The factors that affect call option value affect warrant value in the same ways. 1. Stock price + 2. Exercise price – 3. Interest rate + 4. Volatility in the stock price + 5. Expiration date + 6. Dividends – 245 The Difference between Warrants and Call Options ?When a warrant is exercised, a firm must issue new shares of stock. ?This can have the effect of diluting the claims of existing shareholders. 246 Dilution Example ? Imagine that Mr. Armstrong and Mr. LeMond are shareholders in a firm whose only asset is 10 ounces of gold. ? When they incorporated, each man contributed 5 ounces of gold, then valued at $300 per ounce. They printed up two stock certificates and named the firm LegStrong, Inc.. ? Suppose that Mr. Armstrong decides to sell M
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