SOFE
SOFA-CFE · Question #112
SOFA-CFE Question #112: Real Exam Question with Answer & Explanation
The correct answer is B. The insurance company transfers to the buyer of a call option the opportunity for capital gain-if. See the full explanation below for the reasoning.
Question
Which of the following is Correct?
Options
- AThe insurance company transfers to the seller of a call option the opportunity for capital loss-if the
- BThe insurance company transfers to the buyer of a call option the opportunity for capital gain-if
- CThe insurance company transfers to the seller of a call option the opportunity for capital loss-if the
- DThe insurance company transfers to the buyer of a floor option the opportunity for option gain-if
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