Patent ID: 7590581

Claim:
A computer-based method for determining a value of an index-offset deposit product, having a principal amount P, a term T, a specified guaranteed amount G, and an index credit C, comprising: a) setting trial values, using a processor in at least one specially programmed computer, for fixed-income-linked crediting parameters for said product implying an expected fixed-income-linked credit component F at the end of the term T; b) determining a cost, using the processor, for an equity option paying equity-linked credit component E such that the index credit C=E+F, to be paid at T, together with the principal P, is at least equal to G; c) summing, using the processor, said equity option cost, present value of principal, and present value of fixed-income-linked credit component to determine, using the processor, said value of said index-offset deposit product; and, d) storing, in a memory device for the at least one computer, said determined value of said index-offset deposit product.