标题: Simple interest or compound interest in Option/FRA [打印本页] 作者: sabre 时间: 2011-7-11 19:28 标题: Simple interest or compound interest in Option/FRA
When we use option to hedge interest rate risk, the option on Libor rate or FRA are ofter used.
I found in FRA calculation, we often use compound interest; while in option hedge, we often use simple interest.
Is this a rule or we actually can use any one in calculation?作者: mik82 时间: 2011-7-11 19:28
Can anybody help on this?作者: infinitybenzo 时间: 2011-7-11 19:28
