单选题 At a market rate of 7 percent, a $1000 callable par value bond is priced at $910, while a similar bond that is non-callable is priced at $960. What is the value of the embedded call option?

A、

A. $40.
B、

B. $50.
C、

C. $30.

【正确答案】 B

【答案解析】The value of the embedded call option is simply stated as : value of the straight bond component -callable bond value=value of embedded call option. $ 960-$ 910=$ 50.