Search engine for discovering works of Art, research articles, and books related to Art and Culture
Javascript must be enabled to continue!
How Do Options Add Value? Evidence from the Convertible Bond Market
View through CrossRef
Abstract
This paper studies the value relevance of the options market by focusing on convertible bond pricing. Pricing convertible bonds requires essentially the same set of information necessary to price options. Using a regression discontinuity design based on minimum stock price requirements for option listings, we find that the availability of stock options helps issuers attract more convertible bond buyers and reduces convertible issuers’ cost of financing. Our results highlight that the availability of individual stock options can add value to security issuers.
Title: How Do Options Add Value? Evidence from the Convertible Bond Market
Description:
Abstract
This paper studies the value relevance of the options market by focusing on convertible bond pricing.
Pricing convertible bonds requires essentially the same set of information necessary to price options.
Using a regression discontinuity design based on minimum stock price requirements for option listings, we find that the availability of stock options helps issuers attract more convertible bond buyers and reduces convertible issuers’ cost of financing.
Our results highlight that the availability of individual stock options can add value to security issuers.
Related Results
Environmental Surveillance Protocols for Highly Pathogenic Avian Influenza (HPAI) v2
Environmental Surveillance Protocols for Highly Pathogenic Avian Influenza (HPAI) v2
EnvironmentalSurveillance Protocols for Highly Pathogenic Avian Influenza (HPAI) This comprehensive protocol suite enables systematic environmental surveillance for avian influenza...
Option features and price discovery in convertible bonds
Option features and price discovery in convertible bonds
AbstractIn this paper, we investigate whether the option features in convertible bonds lead to price discovery. On the basis of minute‐level data from January 2019 to December 2021...
2 mils Au wire interchip wedge bond cratering study
2 mils Au wire interchip wedge bond cratering study
Au wire thermosonic wedge bonding is applied for die to die interconnect on accelerometer device. With the fragile bond pad structure of MEMS device, bond pad cratering or bond pad...
Same Underlying, Different Markets: How Convertible Bond Trading Drives Risk Spillovers
Same Underlying, Different Markets: How Convertible Bond Trading Drives Risk Spillovers
This paper examines how trading in securities with the same underlying asset but different market structures generate risk spillovers. Using intraday high-frequency and order-level...
The chemical bond properties and ferroelectricity studies of SrBi4Ti4O15
The chemical bond properties and ferroelectricity studies of SrBi4Ti4O15
Spontaneous polarization as the most immediate parameter in ferroelectricity is always an emphasis in ferroelectric research. Some ferroelectric microscopic theory such as Berry-ph...
Hydrogen bond donors in drug design
Hydrogen bond donors in drug design
In medicinal chemistry, hydrogen bond donors are seen to cause more problems than hydrogen bond acceptors and this study examines hydrogen bond donor-acceptor asymmetries in the co...
The Raw Materials Convertible into Bonds
The Raw Materials Convertible into Bonds
Abstract
This article is dedicated to the instrument such as raw materials convertible bonds, the application of which in the mining industry can increase the efficiency of mining ...
Lectin C gene analysis v1
Lectin C gene analysis v1
Mammalian Tissue Total RNA Purification Protocol by GeneJET RNA Purification Kit (Thermo Scientific, USA) Before starting: • Supplement the required amount of Lysis Buffer with β-...