3.7 Conversion formulas (Page 44) Define R: continuously compounded rate Rm: same rate with compounding m times per year R R=mIn 1+ R=ml e Options Futures, and other Derivatives, 5th edition C 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 3.7 Conversion Formulas (Page 44) Define Rc : continuously compounded rate Rm: same rate with compounding m times per year ( ) R m R m R m e c m m Rc m = +       = − ln / 1 1