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derivatives

CFA Level I

in the formula what does "e" indicates??? Video Details ------------- CFA Level 1 Derivatives #17. Pricing of Stock / Commodity Forward / Futures

Dhakshana Dhakshana

CFA L1

★ 18K+

24-Jul-24 12:40

Answers (4)

It is a continuous compounding formula E stands for epsilon When something is compounded continuously every instant instead of yearly or monthly or daily we compute the compounding factor as e power rt

Sriram Somayajula

Admin

24-Jul-24 12:42

the formula is e^(r-b+c-i) so what is e here pls explain

Thread Starter

Dhakshana Dhakshana

CFA L1

★ 18K+

24-Jul-24 12:43

Thread Starter

Dhakshana Dhakshana

the formula is e^(r-b+c-i) so what is e here pls explain

read link below & then go to calculator video part 2 in introduction chapter and watch first 5 minutes. You will understand what is e https://www.investopedia.com/terms/c/continuouscompounding.asp value of e is 2.7183

Sriram Somayajula

Admin

24-Jul-24 13:07

Sriram Somayajula Admin

Sure sir

Thread Starter

Dhakshana Dhakshana

CFA L1

★ 18K+

24-Jul-24 15:00

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