Pricing Options and Convertible Bonds Based on an Actuarial Approach

Table 1

Comparison of the results given by the actuarial approach with stochastic interest rates and constant interest rates.

Model	40	45	50	55	60	65	70
Stochastic interest	1.293	2.522	4.296	6.620	9.457	12.748	16.420
Constant interest	1.269	2.459	4.176	6.426	9.180	12.383	15.969