Suppose the value of the S&P $500$ stock index is currently $1,800.$

a$.$ If the $1-$year T$-$bill rate is $3\%$ and the expected dividend yield on the S&P $500$ is $1\%,$ what should the $1-$year maturity futures price be$?$

Futures price

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 $($Click to select$)$