Hi tutors, Could you please confirm do we have below concepts in current SP2 curriculum or they are removed? Related to calculating the cost of options. North America Option Conventional method
Hi Bharti Explicit mention of these two methods has been removed from the Core Reading. So you wouldn't be expected to explain how these approaches work. However, the conventional method simply assumes that everyone takes the option and has ultimate mortality. The North American method assumes some percentage take the option and assumes a different mortality for the takers and non-takers. These broad concepts are still in the Core Reading even if the names are not. Best wishes Mark