Using Option Strategy Concepts,what Is the Value of an Insured

question 19

Multiple Choice

Using option strategy concepts,what is the value of an insured home,if the value of the uninsured home is $220,000,the house was purchased for $180,000 and the house has a casualty policy costing $500 with a $2,000 deductible? Ignore interest costs.

• A) $180,000
• B) $217,500
• C) $220,000
• D) $222,500