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Tom is interested in a potential investment in a major insurance company. Tom read an article in which the insurance company has hired a consultant
Tom is interested in a potential investment in a major insurance company. Tom read an article in which the insurance company has hired a consultant to help it to implement an immunization strategy. Tom's investment strategy is to buy call options (where the underlying asset is the stock of the insurance company). If the insurance company successfully implements the immunization strategy, how would the value of these call options be affected?
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If the insurance company successfully implements an immunization strategy it is likely to reduce its ...
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