 Quote:
Originally Posted by M Paquette
Think of it this way. You, Vinnie, and a few other associates buy a term life policy with reassignable benefits on the old guy that runs the corner newsstand. A few days later, something unfortunate happens when a delivery truck smashes through the newsstand and puts the old guy in the hospital. Being as he is not expected to live, you approach the old guy's wife and offer to reassign the insurance policy to her in exchange for a modest fee, say 80% of face value. Hey, accidents happen.
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Same could be said for equity puts.
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