A long position in S&P 500 futures contracts is exposed to significant systematic risk: it realizes gains when the equity market rises and realizes losses when the equity market falls. Suppose that equity market investors demand a risk premium for bearing such systematic risk. What would you expect to be true regarding the S&P 500 futures price today versus what investors currently expect the spot price of the S&P 500 to be in the future?

Group of answer choices

Futures prices are equal to the expected spot price.

Futures prices are less than the expected spot price.

Futures prices are more than the expected spot price.