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Imagine that I am taking out credit insurance that pays $10,000 each year that my debtor defaults on a payment. If the probability for default is 0.10 each year, how much should iI pay up front for two years of credit insurance?
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Risk Analyst

Interviewed at Goldman Sachs

3.7
Nov 10, 2011

Imagine that I am taking out credit insurance that pays $10,000 each year that my debtor defaults on a payment. If the probability for default is 0.10 each year, how much should iI pay up front for two years of credit insurance?

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