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Under what circumstances do you use the LN(S)+*u-.... formula? Is it for Stock Prices when the question specifies "continuous returns"?? Because sometimes you just use -Drift*T + (SD(sqrtT)*Z). Is that formula only used on VaR calculations for Returns? There are so many different VaR formulae...

Hi David, I have a little bit of confusion with VaR calculations. There are so many variations to it. (FRM Part 1). I see that sometimes you use the LN(S)+(u-SD^2/2)T to get the exponent with drift and then you do the regular VaR calculation on that (SDxZ). And then you find the Exponent of the...

Personal deadline for Foundations of Risk Mgt - 26.08.14 (achievable)