The call price of the security generally___________the security's par value.

Question

Quizplus · Accepted Answer

The call price of a security is the price at which the owner of a call option can purchase the underlying asset. Since the call option gives the owner the right to buy the underlying asset at a set price (the strike price), the call price of the security will always be greater than the strike price. Therefore, the correct answer is B, "is greater than."

The Call Price of the Security Generally___________the Security's Par Value