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No. Options also provide a fundamental service - insurance. So, in the case where the option buyer is paying for insurance, sellers add value by underwriting th
by ksaxena 4y ago
No. Options also provide a fundamental service - insurance. So, in the case where the option buyer is paying for insurance, sellers add value by underwriting the risk that is being insured. Hence, both the buyer and the seller win - the buyer gets insurance, the seller gets cash.
- Jenk 4y ago... and the insurance underwriters lose, upping their fees the next time around, so future insurance customers lose out, too.