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#1
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In the SOA samples, it gives instructions on how to find B using a calculator table. 2 questions:
Why do we put in the undiscounted payoffs? Aren't you basing your estimate on the price...which would be the discounted payoffs? Does anyone else consistently get the calculator's "a" to equal .844? I've entered the 6 numbers exactly as they appear below but I'm not getting the same 1.139 output for "a". Spoiler: |
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#2
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try to switch the 2 columns
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