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In its simplest form, convertible arbitrage means being long with a convertible bond and short with the stock of this convertible's issuer. Arbitrageurs try to isolate the call option imbedded in the convertible in order to benefit from the inefficiency in the evaluation of the volatility of this option (implied volatility) in comparison to the historical or real volatility of the underlying stock. Let us take as an example of a convertible bond Lambda. wholesale Royal jersey
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