Lecture on 26th of April

In the previous lecture we started looking at Chapter 8 on unit linked insurance policies where we introduced some fundamental concepts and results from finance. Next week we will introduce the concept of a fair price of a contingent claim and see how this can be applied in our setting in order to price unit linked insurance policies.

Work through Problems 1 and 2 in exercises 8 for next week.

Lecture notes and a solution to exercises 7 are now uploaded on the webpage.