The call privilege is generally not exercised until the conversion value of the security is ________ the call price.
A) 5 to 10 percent below
B) equal to
C) 10 to 15 percent above
D) 25 to 30 percent above

Question

Quizplus · Accepted Answer

The call privilege is typically exercised when the conversion value of the security is 10 to 15 percent above the call price, as this allows the issuer to convert the security into equity at a favorable rate.

The Call Privilege Is Generally Not Exercised Until the Conversion