Insurance Entities Usually Write Covered-Call Options Because They Consider the Premium

question 207

Multiple Choice

Insurance entities usually write covered-call options because they consider the premium received for writing the options to be either:

• A) an economic hedge between a decline in market price and security
• B) a decrease in yield on the underlying risk security
• C) Both A & B
• D) Neither A nor B

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Definitions:

Liver

A vital organ located in the upper right quadrant of the abdomen, involved in numerous metabolic processes including detoxification, protein synthesis, and the production of bile.

Spleen

An organ located in the abdomen that is involved in filtering blood, producing white blood cells, and removing old red blood cells.

Stroke

A medical condition caused by interruption of blood supply to the brain, resulting in brain injury.

Ischemia

Reduced blood supply to an area of the body.