With the Help of an Example, Explain Straddle Positioning

question 118

Essay

With the help of an example, explain straddle positioning.

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Definitions:

Insured

A person or entity covered by an insurance policy receiving financial protection or reimbursement against losses from an insurance company.

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into a contract.

Co-insurance Clause

A provision in insurance policies that requires the policyholder to bear a portion of the losses to which the insurance applies.

Fireproof

Designed or made resistant to fire or its effects, reducing the risk of fire damage.