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Suppose the price for a 6-month S&P index futures contract is 552.3. If the risk-free interest rate is 7.5% pa and the dividend yield on

Suppose the price for a 6-month S&P index futures contract is 552.3. If the risk-free interest rate is 7.5% pa and the dividend yield on the stock index is 4.2% per year (both are continuous compounded), and the market is complete and there is no arbitrage, what is the price of the index today?\

a.543.26

b.552.11

c.555.78

d. 560.02

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