Rider Benefits and Options on Life Assurance Contracts.

Flexible Supply Contracts via Options

We develop an option model to quantify and price a flexible supply contract, by which the buyer (a manufacturer), in addition to a committed order quantity, can purchase option contracts and decide whether or not to exercise them after demand is realized. We consider both call and put options, which generalize several widely practiced contracting schemes such as capacity reservation and buy-bac...

Safety Assurance Contracts for Integrated Modular Avionics

This paper describes a method for performing safety analysis on an Integrated Modular Avionics system in a manner which supports the incremental development and change of system components. This is achieved by analysing each component in the context of the overall system design and then finding derived safety requirements. Each IMA component (hardware, software or both) is then examined to dete...

Assurance for Temporal Compatibility Using Contracts

Software realization of a large-scale Distributed Computing System (DCS) is achieved through the Componentbased Software Development (CBSD) approach. A DCS consists of many autonomous components that interact with each other to coordinate each system activity. The need for such coordination, along with requirements such as heterogeneity, scalability, security, and availability, considerably inc...

Syphilis and Life Assurance

Life Insurance Contracts with Embedded Options Valuation , Risk Management , and Regulation

Life insurance contracts are often complex financial securities pervaded by embedded options such as interest rate guarantees, bonus and surrender options, and sometimes even more exotic elements. It is safe to say that historically these financial elements have typically not been offered specific attention by accountants and actuaries of the issuing companies who, until very recently, have rel...