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Suppose the value of the S&P 5 0 0 stock index is currently 2 , 0 0 0 . a . If the 1 -

Suppose the value of the S&P 500 stock index is currently
2,000.a.If the 1-year T-bill rate is 3% and the
expected dividend yield on the S&P 500 is 2%, what should the
1-year maturity futures price be?b.What if the T-bill rate is less than
the dividend yield, for example, 1%?The T-bill rate is less than the dividend yield, then the
futures price should be

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