Q1.What is Option adjusted yield? Please explain the concept as well as the formula
Q2. If effective annual rate is (1+r/n)n -1 , why is effective annual yield given as (1+yield)365/100 -1? please explain the difference in the two formulae.
Q1.What is Option adjusted yield? Please explain the concept as well as the formula
Q2. If effective annual rate is (1+r/n)n -1 , why is effective annual yield given as (1+yield)365/100 -1? please explain the difference in the two formulae.