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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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