Insured financial options

The purpose of this paper is to introduce the fundamental concept of option insurance into the practice of financial option market. Two starkly-dissimilar concepts of insurance and financial options are integrated into creating insurance for option speculators and portfolio managers to insure their...

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Bibliographic Details
Main Author: Shu, Jian Jun
Other Authors: School of Mechanical and Aerospace Engineering
Format: Conference or Workshop Item
Language:English
Published: 2011
Subjects:
Online Access:https://hdl.handle.net/10356/93984
http://hdl.handle.net/10220/7262
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Institution: Nanyang Technological University
Language: English
Description
Summary:The purpose of this paper is to introduce the fundamental concept of option insurance into the practice of financial option market. Two starkly-dissimilar concepts of insurance and financial options are integrated into creating insurance for option speculators and portfolio managers to insure their premiums when “misfortune” befalls on them. This paper also addresses the “loopholes” of prevailing market practices and attempts to fill the void by proposing a third entity framework, potentially gaining benefits from the situation.