Originally Posted by Actuarialsuck
This is actually discussed in ASM I believe in Lesson 17. Abe goes through the cases for a = 0, 1, 2, -1 and 1/2.
I don't have the manual in front of me, but for some reason I don't ever remember seeing the delta* (lease rate equation) and I saw no mention of the term lease rate, whereas in McDonald, this is all exlplicitly mentioned.
It's based on the same concepts as are the formulas for F, F^P, and E[S^T] (which ASM mentions), but delta* is still a term that I don't remember mentioned.