Volatility eased by around 1-1.5% during December for all the indexes shown in the table below. This led to increased terms for guaranteed products as the underlying options were cheaper. Interest rates were relatively unchanged so the amount to spend after allowing for the purchase of the zero-coupon bond was the same.
Income levels were down over the month as a decline in volatility reduces the premium generated by risking capital. When volatility levels change, one usually sees a move in the o
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