Insured financial options
Shu, Jian Jun
Date of Issue2010
Mini EURO Conference "Continuous Optimization and Information-Based Technologies in the Financial Sector” (24th : 2010 : Izmir, Turkey)
School of Mechanical and Aerospace Engineering
The purpose of this paper is to introduce the fundamental concept of option insurance into the practice of financial option market. Two starkly-dissimilar concepts of insurance and financial options are integrated into creating insurance for option speculators and portfolio managers to insure their premiums when “misfortune” befalls on them. This paper also addresses the “loopholes” of prevailing market practices and attempts to fill the void by proposing a third entity framework, potentially gaining benefits from the situation.
© 2010 Izmir University of Economics, Turkey © 2010 Vilnius Gediminas Technical University, Lithuania