The Call Price Can Be Expected to Be Higher

question 45

Multiple Choice

The call price can be expected to be higher:

• A)the lower the current share price
• B)the lower the expected dividend
• C)the higher the exercise price
• D)the lower the risk-free interest rate

---

Definitions:

Obligated

A condition or situation where one is legally or morally bound to perform a certain action or fulfill a duty.

Stop-Payment Order

a request made to a bank by an account holder not to pay a check that has been issued but not yet cashed.

Loss

A decrease in value, resources, or money typically as a result of a business transaction, investment, or unforeseen events.

Postdated

Pertaining to a check or other document that bears a date later than the actual date it was written, to be cashed or deposited at that later date.