If the expected growth rate in dividends on stocks increases 75BP:
Wouldn’t this reduce the FP?
A question from schweser says the holder of a futures contract would benefit because the spot price would increase, holding interest rates constant, and thus the future price would increase.
I got this one wrong too but calculate it out by using GGM and comparing what that would do to the index and you will see. The main point is that if g in V0=D1/(r-g) grows then that will increase the current spot price by more than it will reduce the futures price due to the PV of the increased dividends. Strange question but it actually works out.