Determine the amount by which a stock index futures is mispriced if the stock index is at 260, the futures is at 263, the risk-free rate is 7.50 percent, the dividend yield is 3.85 percent, and the contract expires in three months.

Question 8 options:

	Underpriced by 3.0
	Underpriced by 0.62
	Overpriced by 1.11
	Underpriced by 1.11
	Overpriced by 0.62