HULL - problem 17.10

[not_yet_fsa]

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...

[rekrap]

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)...