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 500, what is the implied price of the 6-month stock index future contracts? Please around the answer to the nearest 0.01.

1. 525.64
2. 512.66
3. 506.29
4. 519.11
5. None of the above