Estimate of today opening value for the index

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Yesterday the S&P 500 index closed at 1,340. Today, immediately before the opening of trading on the New York stock exchange, one-year S&P futures are trading at 1,397.25. The one-year riskless rate of interest is 5 percent per year compounded annually. The expected future value of the annual dividends for the S&P index are $22.75. What is your best estimate of todays opening value for the S&P index?

Reference no: EM131575394

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