#245easyFinance
Continuous vs Discrete Compounding
Problem
A stock price rises from $100 to $110 over one year.
What is the continuously compounded return (as a percentage)?
Continuous compounding is the standard convention in derivatives pricing. Enter your answer as a percentage rounded to 4 decimal places.
Constraints
- •Stock goes from $100 to $110
- •Output the continuously compounded return as a percentage
- •Rounded to 4 decimal places
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