单选题 When market rates were 6 percent an analyst observed a $1000 par value callable bond selling for $ 950. At the same time the analyst also observed an identical non-callable bond selling for $ 980. What would the analyst estimate the value of the call option on the callable bond to be worth ?

A、

A. $20.
B、

B. $50.
C、

C. $30.

【正确答案】 C

【答案解析】The non-callable bond has the traditional PY shape. The callable bond bends backwards. The difference between the two curves is the value of the option. 980-950=30.