In the context of insurance,protective put buyers who choose lower exercise prices are using higher deductibles.

Name: In the context of insurance,protective put buyers who choose lower exercise prices are using higher deductibles.
Brand: Quizplus
Rating: 4.7 (28 reviews)

Question

Quizplus · Accepted Answer

In both insurance and options trading, choosing a lower deductible/exercise price means taking on more risk in exchange for a lower premium. So, the protective put buyers who choose lower exercise prices are akin to insurance policyholders who opt for higher deductibles.

In the Context of Insurance,protective Put Buyers Who Choose Lower