Pricing 05-A, Sheet W05e

agnichatagnichat
in GENERAL - PRICING

I have attached my proposed answer to the question identified in the Discussion Title.


If I were to graph the rate change and law change out, the law change would be a purely vertical line at 1/1/21, right? I'm not following the Area 1 and 2 reasoning in Step 2A of the answer presented for W-05e.


Please advise

Cj (T-1 day)

Comments

  • GrahamGraham
    edited October 2021

    What happened here is the dates for the rate change and law change were reversed in the statement of the problem so I fixed that. It was also supposed to be annual policies, not 6-month policies. The given solution I believe was correct for the intended problem.

    I took a quick look at your solution and it looks correct for the original version of the problem. Sorry for the confusion.

    Thanks for letting me know.

    T-1!

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