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hw0799
04-03-2007, 01:33 AM
hedge risk in investment guarantees embedded in insurance product,
course8v, 2004, 16b, what I could think that material cover this topic, is Mary Hardy's investment guarantee, chap 8, dynamic hedging for separate account gurantees",

what other material you think might relevent?

those material most time appear on section 3.

rekrap
04-03-2007, 01:37 AM
There are other propsed "effective" questions from past 8V exams suggested here (http://www.actuarialoutpost.com/actuarial_discussion_forum/showthread.php?t=100783).

rekrap
04-03-2007, 02:05 PM
Solutions to the exams (other than 2006) are available at the SOA website.

I dare you to go look without me providing a link.

campbell
04-03-2007, 02:32 PM
HW's complaint relates to a reply I had elsewhere (I'm too lazy to look up my own statements): the same material may be covered, but it comes from a different reading now, so the answer is likely to be a little different.

For what it's worth, I never bothered looking at old solutions when I studied for 8V, and I don't feel like starting now. Unlike the multiple choice exams, there are lots of right (or good enough) answers for a particular written question, especially if it's an analysis question as opposed to a numerical one.

As the model solutions are more-or-less verbatim from someone's actual answer (a little bit cleaned up), there's likely to be possibilities missing from the answer, and extraneous stuff on display as well.

You should read the solutions mainly to get an idea of what good solutions look like -- it can show you how you should stay on-topic with regards to the question (don't go too far afield), but also shows that you really don't have to write that much to score perfectly on a particular question.

seattleIslander
04-29-2007, 06:19 PM
2004 16b, SOA solution says buy S&P index. The policy has an embeded put option. It's sold to the policy holders. The company should short S&P to hedge the put option sold. Anyone agree?