Many variable annuities provide money-back guarantees and market guarantees on invested principal. Embedded in some of these guarantees are stochastic maturity put options with adjustable strike prices. These variable annuities can be surrendered or lapsed at any time. The lapse option when exercised rationally represents an American style sell-back option that is exercised by the policyholder ...

restriction of option of meeting place to the sale contract is treated as incontrovertible in both shiite jurisprudence and iranian civil code in such a way that it is considered among necessities of shiite jurisprudence by some and a matter of consensus by others. however, malik and abu hanifa radically denied the prevailing opinion and shafi‘i had his own idea in this connection. since transa...

The surrender option embedded in many life insurance products is a clause that allows policyholders to terminate the contract early. Pricing techniques based on the American Contingent Claim (ACC) theory are often used, though the actual policyholders’ behavior is far from optimal. Inspired by many prepayment models for mortgage backed securities, this paper builds a Rational Expectation (RE) m...

Economic guidance can be of substantial value to policymakers in principle. However, guidance delivered in the form of complex formulae and detailed mathematical characterizations of optimal policies may not be fully appreciated or warmly embraced. Consequently, insights like those of William Rogerson (2003) are particularly important. Rogerson demonstrates in a plausible setting that a pair of...

A common practice in real estate markets is the sale of housing development units before completion, and in some cases even before beginning of the actual construction, known as presale. Developers that choose to presell units are subject to default on the part of the buyers if market conditions become unfavorable. In recent years, court rulings in Brazil have established that developers must r...

iqala (cancelling of the contract) is a legal act that is formed by sides' satisfactory contract and makes it breakup. imami, hanbali and shafei jurists revocate the iqala. hanafi jurists account iqala revocation into sides of contract, but a new transaction into outsiders. from the maleki jurists viewpoint, iqala is a new transaction, but civil code accounts the iqala tafasokh (breaking u...

T he two major types of securities are stocks and bonds. A share of stock represents partial ownership of a company with an uncertain payoff which depends on the success of the specific business. Bonds, on the other hand, are loans which must be repaid except in cases of default; they can be issued either by governments or by business. Modern financial markets offer many other instruments besid...

This paper describes an parallel semi-Lagrangian nite diierence approach to the pricing of early exercise Asian Options on assets with a stochastic volatility. A multigrid procedure is described for the fast iterative solution of the discrete linear complementarity problems that result. The accuracy and performance of this approach is improved considerably by a strike-price related analytic tra...