ABSTRACT
Pricing is a complex endeavour, which is best conceptualised as a process or even as a project: that is to say, an undertaking with a beginning and an end and a number of different tasks to be executed in a certain order. To get a fair idea of what the pricing process entails without getting bogged down into the details that inevitably need to be considered in any realistic example, we will start looking at a very simple example of pricing, carried out in a rather traditional, non-actuarial way. Despite its simplicity, this example will contain all the main ingredients of the pricing process that we will expand on in the rest of the book.
