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Question 837 - CTFA discussion

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Insurance entities usually write covered-call options because they consider the premium received for writing the options to be either:

A.
an economic hedge between a decline in market price and security
Answers
A.
an economic hedge between a decline in market price and security
B.
a decrease in yield on the underlying risk security
Answers
B.
a decrease in yield on the underlying risk security
C.
Both A & B
Answers
C.
Both A & B
D.
Neither A nor B
Answers
D.
Neither A nor B
Suggested answer: D
asked 16/09/2024
Asif Khan
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