HELP! FINAL (N) SFM -> FUTURES QUERRY

Final 4229 views 14 replies

I have a querry regarding the computation of e ^ x

[CA Final (New Syllabus), Strategic Financial Management, Valuation of Futures].

In calculation of Therotical Futures Price, we use the following formula:

TFP

TFP = Spot Price X e ^ (r x n)

How to Calculate the value of "e" without using Log - Antilog tables?

Another Question: Will the Institute give us "Log Tables"? If yes, They will be "Common Log Tables" or "Natural Log Tables"?

Thank You !

Replies (14)

actually institute whenever gives this sums  they provides value of the E^rn , but one never know they can also provide table for computing exponential table (recently in cost exam they have given t table in QT ) so be ready for table also, and don't worry it is not possible to compute it without scientific calculator so just no need to be anxious about it !!

 

Regards

 

Originally posted by : Manmohan




actually institute whenever gives this sums  they provides value of the E^rn , but one never know they can also provide table for computing exponential table (recently in cost exam they have given t table in QT ) so be ready for table also, and don't worry it is not possible to compute it without scientific calculator so just no need to be anxious about it !!
 
Regards

 Understood. Thank you !

 

As you said, they might give table itself. If so, Will it be "Natural Log Table" i.e [ Log x to the base e] or "Common Log Table" i.e [log x to the base 10]

 

Thanks in advance

Originally posted by : sudhanshuk

 




Originally posted by : Manmohan









actually institute whenever gives this sums  they provides value of the E^rn , but one never know they can also provide table for computing exponential table (recently in cost exam they have given t table in QT ) so be ready for table also, and don't worry it is not possible to compute it without scientific calculator so just no need to be anxious about it !!
 
Regards






 Understood. Thank you !

 

As you said, they might give table itself. If so, Will it be "Natural Log Table" i.e [ Log x to the base e] or "Common Log Table" i.e [log x to the base 10]

 

Thanks in advance

Natural Log Table

90% tyms we are given with the value.. also u cn onsult compiler.. there they hav explained hw to calculate e value

Don’t worry you will get table in exam hall but you have to demand it.


If you will not get table then you can calculate directly by using calculate.


Follow the following step to calculate the value of ex.


Example-1: Suppose you have to calculate value of e 0.556

For this you have to remember value of “e”. Value of e = 2.71828

It means we have to calculate the value of 2.71828 0.556

Follow following step on calculator:

2.71828  √ √  √  √  √  √  √  √  √  √  √  √  (i.e press 12 times: square root)

 

-      1    (i.e. press "minus", then "one")

 

X     0.556  (i.e. press "Multiply", then "0.556")

 

+   1   (i.e. press "Plus", then "1")

 

X =    X =      X =   X =   X =   X =   X =   X =   X =   X =   X =   X =  (i.e. press 12 times: "multiply" and "=")

 

Now you have 1.74373 on your calculator.

 

--it means  e 0.556 = 1.7437

Well so many replied you even I gonna do in different way!

Notify me after you get to understand!

if to say e^3 then 1+[x(^1)/1!]+[x(^2)/2!]+[x(^3)/3!]

                                were x=3,  1 + (3^1)/1  +  (3^2)/2  + (3^3)/3 

                                                    1 + 3 + 4.5 + 9                             

                                                     =17.5

      (were "!" indicates factorial)

Bye

Originally posted by : KARTHIKA

Well so many replied you even I gonna do in different way!

Notify me after you get to understand!

if to say e^3 then 1+[x(^1)/1!]+[x(^2)/2!]+[x(^3)/3!]

                                were x=3,  1 + (3^1)/1  +  (3^2)/2  + (3^3)/3 

                                                    1 + 3 + 4.5 + 9                             

                                                     =17.5

      (were "!" indicates factorial)

Bye


In your method how i calculate value of e ^ 0.556  ?

@ Nagendra sir,

Thanks for sharing..........

Can we use it in exam directly for getting value of e ^ x ?

 

Originally posted by : CA Nagendra

Don’t worry you will get table in exam hall but you have to demand it.







If you will not get table then you can calculate directly by using calculate.




Follow the following step to calculate the value of ex.




Example-1: Suppose you have to calculate value of e 0.556

For this you have to remember value of “e”. Value of e = 2.71828

It means we have to calculate the value of 2.71828 0.556

Follow following step on calculator:

2.71828  √ √  √  √  √  √  √  √  √  √  √  √  (i.e press 12 times: square root)



 

-      1    (i.e. press "minus", then "one")

 

X     0.556  (i.e. press "Multiply", then "0.556")

 

+   1   (i.e. press "Plus", then "1")

 

X =    X =      X =   X =   X =   X =   X =   X =   X =   X =   X =   X =  (i.e. press 12 times: "multiply" and "=")

 

Now you have 1.74373 on your calculator.

 



--it means  e 0.556 = 1.7437

 Thank You !

It was really helpful.

Thanks again.

Thanks for sharing method to calculate e^x value by calculator

How to calculate e^-rt??

Originally posted by : Rajesh

How to calculate e^-rt??

 

Example-1: Suppose you have to calculate value of -0.556

For this you have to remember value of “e”. Value of e = 2.71828

It means we have to calculate the value of 2.71828 -0.556

Follow following step on calculator:

2.71828  √ √  √  √  √  √  √  √  √  √  √  √  (i.e press 12 times: square root)

 

-      1    (i.e. press "minus", then "one")

 

X     0.556 

±

   (i.e. press "Multiply", then "0.556" and then "

±"

)

 

+   1   (i.e. press "Plus", then "1")

 

X =    X =      X =   X =   X =   X =   X =   X =   X =   X =   X =   X =  (i.e. press 12 times: "multiply" and "=")

 

Now you have 0.573438 on your calculator.

Thanks a lot sir...............

Anybady Help me for sfm note of nagendra sah provide on me.......................

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