If t-bills pay 20 per six months and the semiannual


The S&P 500 Index is currently at 1,500. You manage a $18 million indexed equity portfolio. The S&P 500 futures contract has a multiplier of $250.

If T-bills pay 2.0% per six months and the semiannual dividend yield is 1.8%, what is the parity value of the futures price? (Round your answer to 2 decimal places. Do not round intermediate calculations.)

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Financial Management: If t-bills pay 20 per six months and the semiannual
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