VT Implied APY

Implied APY

The implied APY is calculated as:

$$Implied APY= \text{Price}(t_0)^{\frac{1}{T_{\text{yearstoexpiry}}}} - 1$$

For example, if $( \text{Price}(t_0) = 4 )$ and $( T_{\text{yearstoexpiry}} = 3 )$

$$Implied APY= 4^{1/3} - 1 = 0.59$$