floorOptionPBO: Cost of floor option (pbo)

In nathanesau/StocVal: Values embedded options in DB pension plan.

Description

Cost of floor option (pbo)

Usage

floorOptionPBO(employee, accountValueNF.out, accountValueWF.out,
  surviveInfo.out, assumptions = planVariables, oneyear = term1,
  tenyear = term10)

Arguments

employee	A row from the demoInfo dataset
accountValueNF.out	output of accountValueNF()
accountValueWF.out	output of accountValueWF()
surviveInfo.out	output of surviveInfo()
assumptions	Plan features and assumptions - by default the variables in planVariables are used.
oneyear	1 year treasury bond yields. By default, deterministic scenario output is used.
tenyear	10 year treasury bond yields. By default, deterministic scenario output is used.

Details

The option cost will be different when a stochastic valuation is used. This is a different way of calculating the cost of the floor option.

Value

The cost of the embedded option

Examples

surviveInfo.out <- surviveInfo(demoInfo[5,]);
 accountValueNF.out <- accountValueNF(demoInfo[5,], surviveInfo.out);
 accountValueWF.out <- accountValueWF(demoInfo[5,], surviveInfo.out);
 floorOptionPBO.cost <- floorOptionPBO(demoInfo[5,], accountValueNF.out,
 accountValueWF.out, surviveInfo.out)

nathanesau/StocVal documentation built on May 23, 2019, 12:18 p.m.