Topic 3 Optional Financing.pptVIP

Option Financing: Derivative Securities期权融资: 衍生金融工具 Learning Objectives Convertible Securities Use of Convertibles Value of Convertible Securities Exchangeable Bonds Warrants Option Financing Derivative Security Straight debt or equity cannot be exchanged for another asset, but options are exchangeable. An option is part of the broader category of derivative securities. We examine the convertible security, exchangeable bond, and warrant in this topic. Convertible Security This provides the convertible holder a fixed return (interest or dividend) and the option to exchange a bond or p