Parity Price formulas Flashcards

1
Q

parity price of bonds

A

stocks mkt price * conversion ratio

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2
Q

parity price of stocks

A

bonds mkt price / conversion ratio

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3
Q

parity price of preferred stock

A

common stock mkt price * conversion ratio

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4
Q

parity price of common stock

A

preffered stock mkt price / conversion ratio

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5
Q

what do parity price formulas ALL have in common?

A

they all divide or multiple by CONVERSION RATIO

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