In this paper, we consider the pricing of derivative products that involve dynamic hedging strategies and payments within the planning horizon. Equity-indexed annuities (EIAs), Guaranteed investment certificate (GIC), American and Barrier options are typical examples of these products. Our exploration involves evaluation under different assumptions related to the way the risk is tailored by the issuer. The unified constrained discrete stochastic dynamic programming framework presented in this paper makes use of sequential local minimizing strategies related to stochastic transitions. This sequential minimizations takes into account all intermediate requirements and involves several dynamic risk measures modelling. To demonstrate the flexibility of this framework we present numerical examples featuring GICs and point-to-point EIAs.
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