View Full Version : HULL - problem 17.10
01-30-2007, 08:31 PM
Hi, can anyone else confirm an error in the text book's solution manual for this problem?
In the manual I see an incorrect u and a..they somehow have the correct p.
the answer in the book is 4.29, but i am getting 4.77...
01-30-2007, 09:33 PM
First, Hull doesn't say (http://www.mgmt.utoronto.ca/~hull/ofod/Errata6e/index.html) there's anything wrong with this particular problem or the solution; however, if you notice, there is a difference between the a in the written solution (as 1.0084) and the a in the DerivaGem output (as 1.0126). Furthermore, the written solution uses r = 0.10 and the DerivaGem output uses r = 0.15 when the problem has r = 0.05, so... a should be 1.004175, right? Also, the u shown in the written is different from the one shown in the DerivaGem output, and that latter is correct.
Second, there is a thread for questions like this (http://www.actuarialoutpost.com/actuarial_discussion_forum/showthread.php?t=101205)...
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