# Search Results

1. Post

### CT4 Sept 2018 Q11i

Well done, Laura! Looks like you've sorted this? John
Post by: John Potter, Apr 7, 2021 in forum: CS2
2. Post

### CS2 Online Classroom for paper B

Hi Donie89, We've made a number of improvements to it so I would make sure that I'm looking at the latest version, Good luck! John
Post by: John Potter, Apr 7, 2021 in forum: CS2
3. Post

### Acted notes – page 39 – Q 10.1 (ii) (e)

Hi Bobby, It is 'so' by inspection. dBt = something * dt + something else * dBt How do we make the LHS = RHS? Well something = 0 and something...
Post by: John Potter, Mar 25, 2020 in forum: CM2
4. Post

### Show equivalent martingale measure Sept 2009 Q6

P-lambda is a probability measure. A probability measure is an equivalent martingale measure if the discounted value of all assets is a...
Post by: John Potter, Mar 25, 2020 in forum: CM2
5. Post

### Under-reaction and Over-reaction to new information (EMH)

I think you've answered your own question! :-) We observe the opposite to what you "would have thought". The market is not reacting enough to do...
Post by: John Potter, Mar 13, 2020 in forum: CM2
6. Post

### S2014 Q4(v) [Calculus - Integral of CDF(x)]

Hi MoleMan, I don't think you need to worry about general statistical results to do this question. We need E[T0], so we integrate tp0 from 0 to...
Post by: John Potter, Sep 27, 2017 in forum: CT4
7. Post

### Bid-offer Spread vs Policy fee

It should be deducted when the question says it's deducted. Have you got an example?
Post by: John Potter, Sep 24, 2017 in forum: CT5
8. Post

### Probability of Survival From Policy Inception

1 - sum of (aq) (If you aint left, you still there) Good luck! John
Post by: John Potter, Sep 21, 2017 in forum: CT5
9. Post

### retrospective accumulation - term assurance

Try some values of k. If they die in the first year, what is k? What is F(1)? Does this make sense? If they die in the 2nd year, what is k?...
Post by: John Potter, Sep 21, 2017 in forum: CT5
10. Post

### Probability of exercising European put option under Black-scholes model

Hi Cookie, Chapter 16, Section 1.4 Example: the Black-Scholes formula for a call option In the proof, look at the second integral - this is...
Post by: John Potter, Sep 15, 2017 in forum: CT8
11. Post

### April 2010 Question 5iii

Hi Cookie, In the BS formula, Phi(d2) = PQ[S(T) > K] John
Post by: John Potter, Sep 15, 2017 in forum: CT8
12. Post

### How does Q. 2) of IAI QP MARCH 2017 makes any sense with that answer?

Hi Kunjesh, Mmm... I see what you mean. I think I'm starting to agree with you that the question doesn't make sense to begin with! Even with...
Post by: John Potter, Sep 15, 2017 in forum: CT4
13. Post

### How does Q. 2) of IAI QP MARCH 2017 makes any sense with that answer?

Hi Kunjesh, Yes, you're right, with that formula, we must have lambda > 1/60, or mu could go negative. We can see this make sense again when we...
Post by: John Potter, Sep 14, 2017 in forum: CT4
14. Post

### How does Q. 2) of IAI QP MARCH 2017 makes any sense with that answer?

Hi Kunjesh, Can you please give the actual question? I agree a negative force of mortality does not make sense by itself. It sounds like a...
Post by: John Potter, Sep 14, 2017 in forum: CT4
15. Post

### Chapter 3 - Markov Chains

Post by: John Potter, Sep 14, 2017 in forum: CT4
16. Post

### mathematical transformation of a non-markov chain to a markov chain

It's really good that you've made this algorithm and thank you for sharing it with everyone! John
Post by: John Potter, Jul 21, 2016 in forum: CT4
17. Post

### Calender Year Rate Interval (Sep 2005 Q - B3)

Calendar year and policy year rate intervals are not in the CT4 syllabus so this question could not be asked on the UK CT4 paper. If the...
Post by: John Potter, Mar 21, 2016 in forum: CT4
18. Post

### Skipping CH6) Time Inhomo. MJ process

Generally, the chapters are put there to be read, not to be skipped. For the UK CT4 exam, skipping Chapter 5 would be a disaster John
Post by: John Potter, Mar 21, 2016 in forum: CT4
19. Post

### Gen. Matrix, no of visits to I, time spent in i

This is the same method, your method is very sensible John
Post by: John Potter, Mar 21, 2016 in forum: CT4
20. Post

### P[ having started in i, visited neither j nor k]

Hi Deepak, Yes, well done, this seems to get to the correct answer! John
Post by: John Potter, Mar 21, 2016 in forum: CT4
21. Post

### Breakdown and censoring happen mid-way between three months

If an event happens some time over a 3 month period but we don't know when, it is sensible to assume that it happens in the middle of this 3-month...
Post by: John Potter, Mar 21, 2016 in forum: CT4
22. Post

### force of mortality decreases over age ? ch-10

Hi Ujjwal, Yes, well done, these are the exact two examples I was thinking of. I would talk about both these features of human mortality if I...
Post by: John Potter, Mar 21, 2016 in forum: CT4
23. Post

### Expected time to reach in No Claim Discount

Sum across the possible paths from Level 1 to Level 4... the probability of this path * the time taken for this path to happen
Post by: John Potter, Mar 21, 2016 in forum: CT4
24. Post

### UK-Sep'08-sol-Q.9-pension scheme-5 state

If someone retires due to ill-health, their pension is calculated and they start to receive their annuity. If they later recover from their...
Post by: John Potter, Mar 7, 2016 in forum: CT4
25. Post

### force of mortality decreases over age ? ch-10

In reality we usually find that the force of mortality increases with age. Note that this is not always true. Please give two examples where...
Post by: John Potter, Mar 7, 2016 in forum: CT4
26. Post

### We lose 2 or 3 degrees of freedom for every 10 age group

This is in the Core Reading. Best to reflect this in your exam script, Good luck! John
Post by: John Potter, Feb 4, 2016 in forum: CT4
27. Post

### Initial Vs Central exposed to risk

Tutor says "I agree". What student says on this?
Post by: John Potter, Feb 4, 2016 in forum: CT4
28. Post

### Use of Initial Exposed to Risk in the Binomial Model

In the naive binomial model, we have D ~ Bin (n,q) but this assumes everyone is observed from x to x+1 In fact, some lives join at age x+a and...
Post by: John Potter, Feb 4, 2016 in forum: CT4
29. Post

### Q9.Sep'12.UK-Event of the Interest. KM & NA Sur. Fun. Est.

Here the death data is the Day Qualified and the censored data is the Day Left Without Qualifying Good luck! John
Post by: John Potter, Feb 4, 2016 in forum: CT4