HP12C advocates I followed your advice and now I need your help

CFA Level II
#1

Hi all,

I LISTENED TO ALL THE HP12C PRAISE AND I HAVE NOW STAYED UP TILL 5AM TRYING TO SOLVE 1 QUESTION

=(8 * 0.5546)-(8 * EXP(-0.04813 * (71/365)) * 0.495)

When inputting this into the calculator, the answer always equals 4.0769 when the answer is actually 0.5137. I have even used the online HP12c simulator but it also yields the same answer.

The order of entries on the calculator:
8 [ENTER]
.5546 [ENTER]
[multiply]
8 [ENTER]
.04813 [CHS] [ENTER]
71 [ENTER]
365 [ENTER]
[divide]
[multiply]
e^x using [g][1/x]
.495
[multiply]
[multiply]
[minus]

#2

I would really like to help you, but I am having trouble deciphering precisely what you are trying to calculate: are you trying to calculate the PV of 8 for 71 days on an exact/365 basis at a continuously compounded rate of 4.813% and then multiplying by 0.495 and then subtracting from 80.5546? :man_shrugging:

Also, the BAII is my silicon of choice, but I could at least show you what keystrokes it would use.

#3

Sorry, didn’t know the formatting was wrong- I’ve corrected it now. Not finding PV, this is actually for Black-Scholes and I’m just trying to complete this formula

#4

8 x 0.5546 = 4.4368

8 x EXP(-0.04813 x (71/365)) x 0.495
= 8 x 0.99068 x 0.495
= 3.92310

4.4368 - 3.92310 = 0.51370 QED

Sounds like your order of operations was off.