An insurance policy is considered analogous to an option. From the policyholders point of view, what type

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An insurance policy is considered analogous to an option. From the policyholder’s point of view, what type of option is an insurance policy? Why?

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Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Question Posted: Aug 28, 2014 10:28 AM

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An insurance policy is considered analogous to an option. From the policyholders point of view, what type

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A put option is insurance since it guarantees the pol...View the full answer

Corporate Finance

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