An example of risk transfer combined with self-insurance is most likely:
- a bond portfolio hedged with an interest rate option.
- an insurance policy with a deductible.
- a bank that establishes a loan loss reserve fund.
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Is option B? Because in insurance policy risk is transferred from insured to insurer also the person has self insurance. In A, risk transfer is not happening while in C also also we have self insurance but risk is ot transferred.