Series 7 Exam Prep Convertible Bonds & Convertible Preferred Stock.

00:01 Introduction and preview 08:02 When given the conversion price establish the conversion ratio. 10:25 Convertible preferred 13:02 Calculating parity 14:12 Calculating parity of the bond 18:15 Arbitrage opportunities 22:54 Calculating parity of the stock 26:31 Arbitrage opportunity 29:43 Advantages and disadvantages. Suitability. 30:57 Adjusting conversion ratio for stock dividends