Question: I hope you don't consider this to be a dumb question. When the SPI shows an increase for the following day, the value of the index is considerably less than the closing value of the index. Shouldn’t the value figure be higher for the SPI?
Answer (By Paul Rickard): There is no such thing as a dumb question.
By SPI, I think you are referring to the futures contract. This is a cash settled instrument that closes out according to the value of the S&P/ASX 200 Index on the third Thursday of the settlement month, usually on a calendar quarter basis.