VARIANCE AND INTEREST RATE RISK IN UNIT-LINKED INSURANCE POLICIES

Variance and Interest Rate Risk in Unit-Linked Insurance Policies

One of the risks derived from selling long-term policies that any insurance company has arises from interest rates.In this paper, we consider a general class of stochastic volatility models bandanas written in forward variance form.We also deal with stochastic interest rates to obtain the risk-free price for unit-linked life insurance contracts, as

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