3.6 Conversion Formulas (Pages 52, 53) Define Rc: continuously compounded rate Rm: same rate with compounding m times per year R R=mIn 1+-m 77 AeRen=A1+m Rm= mle r/m EXamples:3.1, 3.2(page 53) Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, C 2003, Shanghai Normal University3.6 Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2003, Shanghai Normal University Conversion Formulas (Pages 52,53) • Define Rc : continuously compounded rate Rm: same rate with compounding m times per year Examples: 3.1, 3.2(page 53)