M
Michael Lee
Member
As we know, the TVOG is the time value of the options and guarantees, and the calculation is the difference between the average CE(current estimate) under 1000 stochastic scenarios and the CE
The Cost of guarantees is the average number of sum of PV max(guaranteed benefits(t) - Asset share(t),0) under 1000 stochastic scenarios.
From principle, the TVOG is likely to be equal to the Cost of guarantees, but is the TVOG equal to the cost of guarantees mathematically?
The Cost of guarantees is the average number of sum of PV max(guaranteed benefits(t) - Asset share(t),0) under 1000 stochastic scenarios.
From principle, the TVOG is likely to be equal to the Cost of guarantees, but is the TVOG equal to the cost of guarantees mathematically?