Suppose the value of the sampp 500 stock index is currently


Suppose the value of the S&P 500 Stock Index is currently $2,050. If the one-year T-bill rate is 5.5% and the expected dividend yield on the S&P 500 is 5.0%. a. What should the one-year maturity futures price be? (Do not round intermediate calculations.) Futures price $ b. What would the one-year maturity futures price be, if the T-bill rate is less than the dividend yield, for example, 4.0%? (Do not round intermediate calculations.) Futures price $

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Financial Management: Suppose the value of the sampp 500 stock index is currently
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