LOS 1.d vs LOS 4.m

CFA Level I Quant
#1

Hi all,

what’s the difference between the continuous compounding in LOS 1.d and LOS 4.m?

LOS 1.d:
FV = PV x e^(rN)

LOS 4.m:
St = S0 x e^(rT)

I don’t see any difference in the computation?

Cheers

#2

You’re correct: they’re the same.

1 Like
#3

Thanks :slight_smile:

#4

My pleasure.