AD-FREE CAclubindia and Daily Mobile Updates. Subscribe Now!

HELP! FINAL (N) SFM -> FUTURES QUERRY

s (-) (216 Points)

06 January 2011

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 !

Reply
Follow
Share

14 Replies

Manmohan ACA, CS (Chartered Accountant ) (14243 Points)
Replied 06 January 2011

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

1 Like

s (-) (216 Points)
Replied 07 January 2011

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

Manmohan ACA, CS (Chartered Accountant ) (14243 Points)
Replied 07 January 2011

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

1 Like

RIDHI (JOB) (413 Points)
Replied 07 January 2011

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

1 Like

CA Nagendra (CA) (1788 Points)
Replied 08 January 2011

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 e^x.

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

20 Like

CA P KARTHIKA (Chartered Accountant) (715 Points)
Replied 08 January 2011

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

Mayank Raj (CA Final) (91 Points)
Replied 08 January 2011

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 ?

Vivek Himalaya (Student) (160 Points)
Replied 08 January 2011

@ Nagendra sir,

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

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

s (-) (216 Points)
Replied 11 January 2011

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