1. Suppose the risk-free rate is 7% per annum and the dividend yield on a stock index over the next three months is 2% per annum. All interest rates and dividend yields are continuously compounded. If the stock index is trading at 1,000, what is the implied price of the 6-month stock index future contracts? Please round the answer to the nearest 0.01.

1. 1051.27

2. 1025.32

3. 1012.58

4. 1038.21

5. None of the above