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I had a question about the coupon level determination for a simple reverse convertible product. Assuming risk free rates are 4% while premium on short put is 5%, typical text-books would then quote the coupon at 9%.

Can't I expect a slightly higher coupon, by reinvesting the put premium received at inception at the risk free rate ? 4 + 5*1.04 = 9.2 % ?

Thanks

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