An option trader is pricing a 1-year option; he is quoted an interest rate of 6%with semi-annual compounding. In order to price the option correctly he must convert this rate to a continuously...

An option trader is pricing a 1-year option; he is quoted an interest rate of 6%with semi-annual compounding. In order to price the option correctly he must convert this rate to a continuously compounded rate. Calculate the continuously compounded equivalent.
EVT, Extreme Value Theory, helps quantify two key measures of risk.explain?


An option trader is pricing a 1-year option; he is quoted an interest rate of 6% with semi-annual compounding. In order to price the option correctly he must convert this rate to a continuously compounded rate. Calculate the continuously compounded equivalent.