convertible bond out of the money就是当mp小于conversion price的时候吗

问题如下：

Based on Exhibit 2, the current price of Bond 1 is most likely greater than the current price of:

选项：

Bond 2.

Bond 3.

Bond 4.

解释：

C is correct.

All four bonds in Exhibit 2 issued by Alpha Corporation offer the same coupon rate and have the same remaining term to maturity. Bond 4 (callable) most likely has a current price that is less than Bond 1 (straight or option free) because investors are short the call option and must be compensated for bearing call risk. Bond 2 (convertible) most likely has a current price that is greater than Bond 1 because investors are paying for the conversion option embedded in Bond 2 and the option has time value associated with it, even though the option is trading out of the money.

Similarly, Bond 3 (putable) most likely has a current price that is greater than Bond 1 because investors are paying for the put option.