The call price of the security generally ________ the security's par value.
A) is less than
B) is equal to
C) is greater than
D) has no relation to

Question

Quizplus · Accepted Answer

The call price of a security is the price at which the holder of the security can exercise their right to buy the underlying asset. The par value of a security is the face value of the security, which is typically the amount that the issuer of the security promises to pay to the holder of the security at maturity. The call price of a security is generally greater than the security's par value because the holder of the security has the right to buy the underlying asset at a price that is below the market price of the asset.

The Call Price of the Security Generally ________ the Security's