Valuation of Endowment-Insurance Equity-Linked Contracts for Stocks with Exotic Dynamics

Figure 4

Premium as a function of the initial stock value. Equation (45) is the thick line while (12) is the thin, dotted one. Parameters are chosen as 𝑟=4.5% yr⁻¹, 𝜎=30%, 𝑇=6, and 𝛿=3.5% yr⁻¹.