Lindsey Life Insurance Company has an equity indexed annuity called LLIC 12 - O. For an investment of $1,000 - the investor is guaranteed the following: 1. If S&P500 returns are positive for a given year, the investor's account will be credited the return with a cap of 12% at the end of the year 2. If S&P 500 returns are negative for a given year, the investor's account will still be credited 0% at the end of the year Danielle decides to invest $1,000 with LLIC on 01/01/2020 when the S&P500 is also trading at $1,000. In order to manage the risk of the annuity, LLIC decides to: 1. Invest Danielle's $1,000 in safe risk free US Government Securities maturing in one year with a interest rate of 1% 2. Buy a Call option from your professor (who has a very bad Credit Score of 500) with a strike price of $1,000. Assume the premium for the call option is $10 When should the call option expire? In a week End of the year Never Lindsey Life Insurance Company has an equity indexed annuity called LLIC 12 - O. For an investment of $1,000 - the investor is guaranteed the following: 1. If S&P500 returns are positive for a given year, the investor's account will be credited the return with a cap of 12% at the end of the year 2. If S&P 500 returns are negative for a given year, the investor's account will still be credited 0% at the end of the year Danielle decides to invest $1,000 with LLIC on 01/01/2020 when the S&P500 is also trading at $1,000. In order to manage the risk of the annuity, LLIC decides to: 1. Invest Danielle's $1,000 in safe risk free US Government Securities maturing in one year with a interest rate of 1% 2. Buy a Call option from your professor (who has a very bad Credit Score of 500) with a strike price of $1,000. Assume the premium for the call option is $10 When should the call option expire? In a week End of the year Never