The call privilege is generally not exercised until the conversion value of a security is ________ the call price.
A) 5 to 10 percent below
B) equal to
C) 10 to 15 percent above
D) 50 percent above

Question

Quizplus · Accepted Answer

The call privilege is typically not exercised until the conversion value of a security is 10 to 15 percent above the call price, as this provides an incentive for the issuer to convert and potentially save on future interest payments or benefit from favorable market conditions.

The Call Privilege Is Generally Not Exercised Until the Conversion