How is the provision of deposit insurance by the FDIC similar to the FDIC's writing a put

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How is the provision of deposit insurance by the FDIC similar to the FDIC's writing a put option on the assets of a DI that buys the insurance? What two factors drive the premium of the option?

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Financial Institutions Management A Risk Management Approach

ISBN: 9780073530758

7th Edition

Authors: Anthony Saunders, Marcia Cornett

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Question Posted: Jul 24, 2024 08:04 AM

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How is the provision of deposit insurance by the FDIC similar to the FDIC's writing a put

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Financial Institutions Management A Risk Management Approach

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