|
Conversion
|
(1) The process by which a put can be changed to a call and a call to a put. To convert a put to a call, the converter buys the put and the cash underlying and issues a call. To convert a call to a put, the converter buys the call, sells the cash underlying short and issues a put. See also Break Out, Reversal (2). (2) The exchange of a convertible security for the underlying instrument. (3) Selling a call against a long outright forward currency position.
|
