Stock Q has an expected return of 8%: 5% is the expected capital return, the rest being the dividend yield. Stock Q is currently priced at $58. If the risk-free interest rate (effective annual) is 5%, calculate the fair futures price on an eight-month contract for stock Q.

a.

$67.95

b.

$59.16

c.

$59.92

d.

$58.77