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10.1016/j.frl.2020.101659

http://scihub22266oqcxt.onion/10.1016/j.frl.2020.101659
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C7299873!7299873 !32837371
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suck abstract from ncbi


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pmid32837371
      Financ+Res+Lett 2020 ; 36 (ä): 101659
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  • COVID-19, insurer board utility, and capital regulation #MMPMID32837371
  • Li X ; Lin P ; Lin JH
  • Financ Res Lett 2020[Oct]; 36 (ä): 101659 PMID32837371 show ga
  • This paper develops a down-and-out call option model by introducing a structural break in volatility to capture the coronavirus (COVID-19) outbreak. The life insurer's equity and its board's utility are evaluated at the optimal guaranteed rate in the equity maximization. Results suggest that the seriousness degree of the COVID-19 outbreak and capital regulation enhance the optimal guaranteed rate and the board's utility. Increased the board's utility by increasing liabilities costs insurer profitability. Conflicts of incentives can arise during the COVID-19 outbreak.
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