P
Parul Aggarwal
Member
In part (B) of this question the cost of guarantee on maturity is calculated simply as the difference between the guaranteed amount and the fund value at the end. but shouldn't we also consider the probability of survival till the end i.e the probality of survival in the fifth year.
So shouldn't we multiply the given value in the solutions with .998 ?
So shouldn't we multiply the given value in the solutions with .998 ?