Describe the factors that affect retention selection and


1. Describe the factors that affect retention selection and reinsurance limit selection.

2. Review the information on gold futures contracts of the CME Group-based on contract specifications available in case Exhibit 4. How do gold futures work?

3. What is the present value of a $75,000 perpetuity if the discount rate is 13% and payments don’t start until year 2?

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Financial Management: Describe the factors that affect retention selection and
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