Consider the futures contract written on the S&P 500 index and maturing in one year. The interest rate is 5%, and the future value of dividends expected to be paid over the next year is $11. The current index level is 1,457. Assume that you can short sell the S&P index.

a. Suppose the expected rate of return on the market is 10%. What is the expected level of the index in one year? (Round your answer to 2 decimal places.)

b. What is the theoretical no-arbitrage price for a 1-year futures contract on the S&P 500 stock index? (Round your answer to 2 decimal places.)