What should the one-year maturity futures price be what


Suppose the value of the S&P 500 Stock Index is currently $1,500. If the one-year T-bill rate is 3.2% and the expected dividend yield on the S&P 500 is 2.4%

a. What should the one-year maturity futures price be?

b. What would the one-year maturity futures price be, if the T-bill rate is less than the dividend yield, for example, 1.4%?

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Financial Management: What should the one-year maturity futures price be what
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