Magmyre Investments, Ltd. , hold two bonds: a callable bond issued by Mudd Manufacturing Inc. and a put-able bond issued by Precarious Builders. Both bonds have option adjusted spreads (OAS) of 135 basis points (bp). Kevin Grisly, a junior analyst at the firm, makes the following statements (each statement is independent). Apparently, Grisly could benefit from a CFA review course, because the only statement that could be accurate is:（）
A. Given a nominal spread for Precarious Builders of 110 bp, the option cost is -25 bp.
B. The cost of the call option on the Mudd bond is - 15bp.
C. The spread over the spot rates for a Treasury security similar to Mudd’s bond is 145 bp.
