Comparison of the Results for the three Conversion Variants

According to the findings in the previous chapters, the properties of the optimal conversion volume and the values of a convertible bond and a stock primarily depend on the underlying conversion variant. As a consequence, the magnitude of the conversion volume and the corresponding values can differ substantially if another conversion variant is assumed. In this section, we first qualitatively compare the different properties of both the conversion volume and the values of a convertible bond and a stock resulting from the three conversion variants block, unrestricted, and monopolistic conversion. This comparison allows us to identify fundamental differences in the behavior of the conversion volume and the asset values, which arise from the underlying conversion variant. Then, we focus on the magnitude of the conversion volume and the asset values to ascertain whether the conversion volume and the asset values are higher for a particular conversion variant than for another one. As for the previous analysis, we distinguish between the point in time at maturity of the convertible bond and before maturity.