U.S. Continuously Compounded Six-Month (180-Day) Annualized Risk-Free Rate=5.83% Broad Equity Index Continuously Compounded Annualized Dividend Yield=3.00% Broad Equity Index Level=1250 What is price of index? OK don’t you have to turn the annualized dividend yield into a semiannual rate? CFAI just does 1250e^[(.0583-.03)*0.5].
Look closely rellison, you are changing the annualized rates to half a year when you multiply by T in FP = So * e^((Rf - div yield)*T)