单选题 Jori England, CFA candidate, is studying the value of callable bonds. She has the following information: a callable bond with a call option value calculated at 1.75 (prices are quoted as a percent of par) and a straight bond similar in all other aspects priced at 98.0. Which of the following choices is closest to what England calculates as the value for the callable bond?

A、

A. 96.25.
B、

B. 99.75.
C、

C. 96.0.

【正确答案】 A

【答案解析】To calculate the callable bond value, use the following formula: Value of callable bond = Value of straight bond - Call option value Value of callable bond = 98.0-1.75=96.25.