The VIX white paper (https://cdn.cboe.com/resources/vix/vixwhite.pdf) step #1 (page 6) says the the Forward Index Price is calculated as:
F = Strike Price + e^RT x (Call Price - Put Price).
Why doesn't it take dividends into account? Many of the S&P 500 stocks pay dividends, so isn't this formula going to over-estimate the forward index level?
I thought forward price is calculated using put-call parity:
C - P = D(F - K). C: call price for strike K P: put price for strike K D: Discount factor (takes dividends and interest rates into account) F: forward price K: strike
The VIX seems to ignore the dividends portion of the discount factor.