e to the power of RF and T?

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e to the power of RF and T?

What is the answer to this - e to the power of Risk Free rate (assume 4%) and Time is One year (1) ??

I need this as I have lost touch with this exponential thing 10 years ago after I left school. Hahah...now need the answer to calculate the option pricing. Thanks.

2007-04-08 21:39:47 · 1 answers · asked by TK N 1 in Science & Mathematics ➔ Mathematics

1 answers

It looks like your relation is y = e^rt
In the case of r=0.04 ant t=1,
y = e^0.04 = 1.040811

2007-04-08 22:08:22 · answer #1 · answered by Helmut 7 · 0⤊ 0⤋