5.24.2005

Q&A: List 3 reasons why foreign investors would purchase...

...CHF denominated bonds issued by Japanese firms that are convertible into common stock shares.

A: when investors take a view over the longer term in the foreign exchange markets

  • drop in the market interest rate on Swiss franc bonds;
  • rise in the JPY relative to the CHF
  • rise in the price of the company's stock

Category: C++ Quant > Derivatives > Options

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