Investing and Financial Markets
Stock Options and Futures
The Difference Between

Is providing insurance a call or a put option for the insurer?

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Wiki User
2009-09-29 02:56:52

When you buy an insurance on your asset, you are essentially

buying a put option on your asset for protection much like the

Protective Put options trading strategy. As such, to the insurer,

they are actually selling a naked put option to the buyer of the

insurance.


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