E
eevee
Member
Hi there,
It just occured to me that when we learn about options, we learn the difference between the North American and the Conventional method.
But I actually have no idea how an option works in real life. For example, does the policyholder pay for the option at the start of the policy (included within the standard premiums) or does the policyholder pay the the option when he/she exercises it?
Some explanation and examples would be great.
Thanks
It just occured to me that when we learn about options, we learn the difference between the North American and the Conventional method.
But I actually have no idea how an option works in real life. For example, does the policyholder pay for the option at the start of the policy (included within the standard premiums) or does the policyholder pay the the option when he/she exercises it?
Some explanation and examples would be great.
Thanks