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    Financial Institutions Management
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    Exam 20: Deposit Insurance and Other Liability Guarantees
  5. Question
    The Use of the Option Pricing Model to Determine the Actuarially
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The Use of the Option Pricing Model to Determine the Actuarially

Question 10

Question 10

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The use of the option pricing model to determine the actuarially fair premium is difficult to apply in practice because the asset values and risks are difficult to determine.

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