Anyone have a good summary on when to use 360 days vs. when to use 365 days as well as when to annualize using exponents vs. when to annualize by simply multiplying?
360 for interest rate contracts (FRA, SWAPS etc) 365 for dividends and coupon securities and use 365 for the interest rate on currencies.
360 day conversion is for LIBOR. As nibs says, thats what is used in FRA/SWAPs etc.
Thx! I was confused on that too.