7

Suppose the value of the S&P 500 Stock Index is currently $1,500. I the one-year T-bill rate is 32% and the expected dividend yield on the S&P 500 is 24% 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, 14% (Do not round Intermediate calculations) Futures price $