Under the OPM, the FDIC charges the insurer a premium to insure the insurer's deposits and if the insurer does well and the market value of the insurer's assets is greater than the depositis, the net worth is positive and can continue in this manner.

Question

Quizplus · Accepted Answer

The OPM (Options Pricing Model) is not directly related to the FDIC (Federal Deposit Insurance Corporation) or insurance companies. The FDIC insures deposits at banks and savings institutions, not insurers. The OPM is used for pricing options and financial derivatives, not for insuring deposits.

Under the OPM, the FDIC Charges the Insurer a Premium