e function

CFA Level II
#1

Hi,

This is a really embarrassing question… Whenever I am solving for a futures contract for an equity index I keep getting the wrong answer. I don’t think I’m using the e function correctly on the calculator. I am using a BA II Plus.

For example, 1050 e^ (0.04-0.02)(240/365) is suppose to equal 1064. I keep getting it to equal a negative number no where near 1064.

How should I input the formula into my calculator?

Any help would be greatly appreciated.

#2

240 [÷] 365 [x] [(] 0.04 [-] 0.02 [)] [=] [2nd] [LN] [x] 1050 is how I’d do it

The main point is that e^x is input by x, then 2nd->LN

If you’re getting -4548, that’s becaus you’re using LN and not 2nd->LN

#3

Thank you very much!