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As a financial innovation, the options market is introducing Options contracts based on California Earthquakes. In your own words, discuss the following: STOCK MARKET_FINANCE True

As a financial innovation, the options market is introducing Options contracts based on California Earthquakes. In your own words, discuss the following:

STOCK MARKET_FINANCE

True or False? The sellers of Options on California Earthquakes should perform option pricing

based on the real world probabilities of Earthquakes. Explain your answers and provide reasons to support your arguments with derivatives

concepts and example(s). Discuss your answers as clearly as possible.

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