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

---

Definitions:

NAFTA

The North American Free Trade Agreement, a treaty between Canada, Mexico, and the United States that established a trilateral trade bloc in North America.

GATT

The General Agreement on Tariffs and Trade, a legal agreement between countries to promote international trade by reducing or eliminating trade barriers such as tariffs and quotas.

FTAA

The Free Trade Area of the Americas, a proposed agreement to eliminate or reduce trade barriers among all countries in the Americas, excluding Cuba.

Knowledge

The facts, information, and skills acquired through experience or education; the theoretical or practical understanding of a subject.