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Consider deductible in insurance policies, such as home insurance. The deductible corresponds to _________ in option contracts. Spot price (S0) Strikce price (K) S0 +

Consider deductible in insurance policies, such as home insurance. The deductible corresponds to _________ in option contracts.

Spot price (S0)

Strikce price

(K) S0 + K

S0 - K

K - S0

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