Options for Securities Owned by Insurance Entities

B

The correct answer is B. covered-call options.

Covered-call options refer to an investment strategy in which an investor holds a long position in a particular asset, such as a stock, and simultaneously sells or "writes" call options on that same asset. The call options provide the option buyer with the right, but not the obligation, to purchase the underlying asset at a specified price, known as the strike price, before the expiration date of the option.

In the context of insurance entities, covered-call options can be used as a way to generate income from securities that they own. If the option is exercised by the option buyer, the insurance entity can deliver the underlying securities to the buyer. This can be beneficial for insurance entities, as it allows them to generate income from their securities holdings while still retaining ownership of the assets.

Concealed transactions and financial servicing are not relevant to the options that insurance entities own and can deliver. Safekeeping, on the other hand, refers to the holding and safeguarding of assets by a custodian on behalf of a client. While safekeeping is related to the custody of securities, it is not directly related to the options that insurance entities own and can deliver.