Ambiguities in an insurance policy are always resolved in favor of the

Ambiguities in an insurance policy are usually resolved in favor of the insured. Insurance companies draft policy documents and contracts while persons purchasing insurance accept these terms. Therefore it is incumbent on the insurance company to clearly state coverage and limitations. If some claim occurs that is not specifically mentioned in insurance documents, the insured individual is covered.

Option b ($30.6) is the correct option.

Explanation:

Given:

Current price,

= $30

Required rate,

= 13%

Expected dividend,

= 3.30

Now,

The expected ex-dividend will be:

=

On putting the values, we get

=

=

=

= ($)