A corporation has issued $100 par, 8% convertible preferred stock, callable at par. The preferred is convertible into 1.4 shares of common stock. Currently, the preferred stock is trading at $104 while the common stock is trading at $71.50. The corporation calls the preferred stock at par. To realize the largest profit, a customer holding 100 shares of preferred stock should: A tender the preferred shares at the call price B sell the preferred shares at the current market price C sell short the common stock and convert the preferred for delivery to cover the short D continue to hold the preferred shares
