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Derivatives and Risk Management, 1st Edition
book

Derivatives and Risk Management, 1st Edition

by Sundaram Janakiramanan
May 2024
Intermediate to advanced content levelIntermediate to advanced
542 pages
27h 26m
English
Pearson India
Content preview from Derivatives and Risk Management, 1st Edition
Fundamentals of Options 235
E X A M P L E 1 1 . 4
Greater India Corporation issued a bond on June 5, 2007, with a coupon rate of 8% and a maturity of
10 years. e face value of the bond was INR 1,000, and it had a call provision as follows:
Call price INR 1,060
Date of rst call: January 1, 2010, and callable only on that date
is means that the Greater India Corporation has the option to buy the bonds back from the bondhold-
ers by paying INR 1,060 per bond on January 1, 2010. In this option, the exercise price is INR 1,060 and
the exercise date is January 1, 2010.
11.1.5 Put Bonds
A bond with a put provision attached to it is called a pu ...
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Publisher Resources

ISBN: 9781299447547Publisher Website