I have a question on discounting that is best explained through an example:
Let’s say you are set to receive a payment of $100 in 60 days and the LIBOR rate is 1.2%.
Which is the technically correct way to discount this?
Now, these two formulas will both give very similar answers, I am just wondering which would technically be correct? I would think Option A because it accounts for the compounding fully, but want to be sure that this line of thinking is correct.