I’m doing derivatives questions, and getting frustrated with this! So it’s 365 except when it’s 360. Also you don’t assume continuous compounding unless it says, except for that question I just did where it was assumed. Any tips people can share? Thanks
I’m wondering the same thing. So far the only constant I can figure out is that when dealing with LIBOR it’s a 360 day base? But I thought everything else was 365 until the Sample 2 I just did used 360 for equities and currencies. I figured it was just for simplicities sake, but it still messed with my head a little bit.
i think that only fras are with 360
If nothing is states go with 360 for LIBORs and 365 with everything else. If they state differently…then just be their slave…use their rate…