I think I finally understood this transaction, thanks to this article: https://www.investopedia.com/terms/c/convertible-hedge.asp
The key bit I missed before is that the bond is tradeable, so it has a price and the price fluctuates alongside with the stock price.
Hedge is taken against change in bond price. The more common non-tradeable CN would not require such hedging.
Thanks to everybody participating in the discussion.
I think I finally understood this transaction, thanks to this...
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$5.11 |
Change
0.050(0.99%) |
Mkt cap ! $4.319B | |||
| Open | High | Low | Value | Volume |
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| No. | Vol. | Price($) |
|---|---|---|
| 3 | 25166 | $5.09 |
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| Price($) | Vol. | No. |
|---|---|---|
| $5.13 | 29651 | 6 |
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