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A portfolio manager expects to receive funds from a new client in 30 days. These funds will be invested in a basket of shares. You

A portfolio manager expects to receive funds from a new client in 30 days. These funds will be invested in a basket of shares. You decide to take a long position in 30-day forward contracts on the S&P 500 stock index to protect yourself against a rise in stock prices. The index is currently at 2,440. The continuously compounding dividend yield of the index is 1.90% and the continuously compounding risk-free rate is 2%. Assuming a 365-day year, what is the forward price of the index?

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