臺大管理論叢 NTU Management Review VOL.29 NO.2

Effect of Inflation on the Cost of Inflation-Linked Annuities Considering Stochastic Interest Rate and Inflation Rate Models 52 3. Findings When β→∞, an exactly closed-form solution of the annuities with floor is obtained, as shown in Equation (9). (9) with When 1 + α → –∞, an exactly closed-form solution of the annuities with cap is obtained, as shown in Equation (10).