Suppose the 180-day S&P 500 futures price is 1,353.01, while the cash price is 1,338.23. What is the implied dividend yield on the S&P 500 if the risk free interest rate is 3.4 percent?

Implied dividend

1.18 1%

Explanation:

1,353.01 = 1,338.23(1 + 0.034 d)1/2

; d = 0.0118

How does this formula work? I keep trying to put the explanation formula into my calculator but I cant get the answer to come out right