Many financial products contain prepayment options. Loan contracts are often structured to provide the borrower with the option to prepay the loan at any time, or on specific dates, prior to the maturity date of the loan. These options are important aspects of these financial products. The most commonly encountered investment product with these feature is the mortgage backed security. Investmen...

No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without permission in writing from the author. A Valentina you can surrender without a prayer but never really pray without surrender you can fight without ever winning but never ever win without a fig...

In this paper we deal with the problem of valuing the surrender option embedded in a participating life insurance policy with a minimum interest rate guaranteed. This feature is an American-style put option that enables the policyholder to sell back the contract to the insurer at the surrender value. By means of a recursive binomial tree à la Cox, Ross and Rubinstein (1979) we compute, first of...

In this paper we describe an algorithm based on the Least Squares Monte Carlo method to price life insurance contracts embedding American options. We focus on equity-linked contracts with surrender options and terminal guarantees on benefits payable upon death, survival and surrender. The framework allows for randomness in mortality as well as stochastic volatility and jumps in financial risk f...

Lewis Maghanga gives us a timely reminder of how jails and other state institutions have historically continue to be used repress break the Kenyans struggling change order things. He draws similarities between colonial administration neo-colonial government, reminding that is an appendage global imperialism - people Kenya today still face task carrying on with struggle for full independence fre...

Premiums and benefits associated with traditional life insurance contracts are usually specified as fixed amounts in policy conditions. However, reserve-dependent surrender values and reserve-dependent expenses are common in insurance practice. The famous Cantelli theorem in life insurance ensures that under appropriate assumptions surrendering can be ignored in reserve calculations provided th...

This is informed opinion f rom fche Federal agencies where activity is being stepped up in keeping with the President 's V-E Day appeal to "Work. Work, Work" for Japanese unconditional surrender. Although one Government offioial ha s predicted a reduction of 100,000 to 200,000 in Federal staff within four months a f te r the Germ a n surrender, he counters this with the suggestion tha t Governm...

In connection with a problem posed by Kijima and Wong [11], we propose a lattice algorithm for pricing simple Ratchet equity-indexed annuities (EIAs) with early surrender risk and global minimum contract value when the asset value depends on the CIR++ stochastic interest rates. In addition we present an asymptotic expansion technique which permits to obtain a first order approximation formula f...