A 7% convertible debenture is selling at 101. It is convertible into the common stock of the same corporation at $25. The common stock is currently trading at $23. If the stock were trading at parity with the debenture, the price of the stock would be:
A) $43.91.
B) $25.25.
C) $25.00.
D) $40.00.
Answer: B) $25.25.