I don't quite understand the logic for the a'63:2 (HS) = 2a63:2 (HS) and a'64:1 (HS) = 0.6 * 1/2P64 * v^1/2 * a64/5:0.5 (SS) = 2a64:1 (HS) Please help to explain. Thanks!!!
Isn't it just saying that the annuity values for the lives taking up the option is twice that of the lives who don't exercise the option? And I think this comes from the fact that they're twice as likely to claim (this was given in the question)...
