Tsay, Jing-Tang; Lin, Che-Chun; Prather, Larry J.; … - In: Journal of Housing Economics 25 (2014) C, pp. 39-52
We derive an approximate pricing formula for use in reverse mortgage valuation that allows the house price and interest rate to be stochastic with a deterministic distribution of termination time. We compare the results from the approximate pricing formula to a simulation and find that the...