If both constant and continious rates are given, how do you know which to use? I think that you only use continuous rates on an equity index–is this true?
yes. there was a question on sample 2 that did the very same thing…
yep, i agree with using continuous only
exactly why i asked my question, thanks as always
You could use continuous on stock options…
i think you can actually use them on currency futures too. if you convert the constant to continuous by doing ln(1+r) of both div yield and rfr