[Solved] There are regulatory reasons why FIs buy options rather than write options.For example viewing naked options as risky because of the large loss potential. Time-Value: The principle stating that money in hand today is more valuable than the identical amount received later, owing to its capacity to generate earnings. GDP Growth: The increase in the market value of goods and services produced by an economy over time, indicating economic health and progress. Future Value: is the value of an asset at a specific date in the future, calculated from its present value and accounting for factors such as interest rates and time. Present Value: The present-day worth of an anticipated future sum or series of cash payments, calculated using a specific interest rate.