A Class of Mortgage Insurance Pricing
The mortgage insurance pricing problem is studied when the interest rate is modeled by vasic̆ek model and with m stochastic disturbances. Meanwhile, the process of house prices subjects to the jump-diffusion process. Using the principle of the option pricing, we obtain the accurate formulas of two kinds of the mortgage insurance.
KeywordsMortgage Insurance Vasic̆ek model Jump-diffusion process
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