Yield to Call Formula: Exploring Changes in Forex Trading
Yield to call is a formula frequently used in the forex market to calculate the potential return on a call option. It evaluates the intrinsic value of a call option at expiration and takes into account the cost of the option, the current market rate, and its strike price. This formula helps traders evaluate the potential of a call option by providing an estimated return at expiration. Yield to call is most beneficial to investors who are looking to gain exposure to a certain currency without actually buying it.