3.6 Continuous Compounding (Page 43) In the limit as we compound more and more frequently we obtain continuously compounded interest rates $100 grows to $100eR/when invested at a continuously compounded rate R for time T' $100 received at time t discounts to $100e-RT at time zero when the continuously compounded discount rate is r Options Futures, and other Derivatives, 5th edition C 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 3.6 Continuous Compounding (Page 43) • In the limit as we compound more and more frequently we obtain continuously compounded interest rates • $100 grows to $100eRT when invested at a continuously compounded rate R for time T • $100 received at time T discounts to $100e-RT at time zero when the continuously compounded discount rate is R