AIM UK

[ls7550]

Hi Tom

I ended up using the Value Line "Median Estimated Dividend Yield of all dividend paying stocks under review." I then subtracted it from the prevailing 13 Week Treasury rate for each week.

http://www.indexarb.com/dividendAnalysis.html

"The fair value premium equals the interest earned on the spot index minus dividends earned by the stocks that comprise the index. The relevant time period is from the current date until the future's expiration."

Agrees with the short rate - dividends indicating a discount (or premium) to fair value.

Best regards.

Clive.