This study derives the pricing formulas for guaranteed
contracts whose guaranteed minimum rates of return are linked
to single-currency and cross-currency stochastic rates of return
on equity-type assets, denoted by “GSSRs and GCSRs”,
respectively. GSSRs and GCSRs are often embedded in contracts
which include life and pension insurance policies, guaranteed
investment contracts, etc. The valuation of such guaranteed
contracts has not yet been investigated in previous literature
regarding equity-linked guarantees. The past valuation of GCSRs
via a single-currency framework is found to cause a significant
underpricing of GCSRs under maturity guarantee. Our pricing
formulas are more suitable and feasible for practice than those
given in previous relevant literature.