Patent ID: 7895101
Filing Date: 2011-02-22
Classification: G06Q

Abstract:
1. A computer-based method for determining a set of equity-indexed crediting parameters C for a selectable-term equity-indexed deposit product also having a set of profitability requirements R, a principal amount P, an account value A, a maximum term T, a set of lock-in formulas F, a selected term T′, an immediate credit I, and a guaranteed rate G, with R, P, A, T, C, and F determined at the time of product purchase and T′<=T determined by the purchaser after the time of purchase and I and G determined by the seller at T′ according to the set of formulas F, with the immediate credit I being added to the account value A at time T′ and interest being credited to the account value A at the rate G from time T′ to time T, comprising, using a processor in at least one specially programmed computer: generating a set of yield curve and equity index scenarios consistent with valuation parameters; generating a set of values for T′, one for each yield curve and equity index scenario in the set of yield curve and equity index scenarios; setting a trial value C calculating values for I and G for each yield curve and equity index scenario in the set of yield curve and equity index scenarios; calculating the observed distribution D of profitability using said yield curve and equity index scenarios in the set of yield curve and equity index scenarios; comparing D with R; and, based on the comparison of D with R, computing a revised trial value C