CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Which statement regarding the strike price of different embedded options is true?
A. The call price is usually equal to the par value.
B. The selling price of a put option is usually equal to the par value.
C. When a convertible bond is issued the conversion value is usually higher than the bond price.
Explanation: There is usually a premium over par for a callable bond.

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