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The Use of the Option Pricing Model to Determine the Actuarially

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The use of the option pricing model to determine the actuarially fair premium for deposit insurance indicates that the cost of the insurance should rely on both the asset quality and level of leverage of the DI.


Definitions:

Primary Spermatocyte

An intermediate cell type in the process of sperm development, arising from a spermatogonium and giving rise to secondary spermatocytes after meiosis I.

Spermatid

An immature sperm cell.

Sperm

The male reproductive cell, or gamete, in many sexually reproducing organisms, responsible for fertilizing the female ovum.

Alkaline Fluid

A liquid with a pH greater than 7, exhibiting basic properties and often found in various biological and industrial processes.

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