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Suppose the value of the S&P 5 0 0 stock index is currently $ 4 , 2 0 0 . Required: a . If the

Suppose the value of the S&P 500 stock index is currently $4,200.
Required:
a. If the 1-year T-bill rate is 6% and the expected dividend yield on the S&P 500 is 5%, 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%?
Complete this question by entering your answers in the tabs below.
If the 1-year T-bill rate is 6% and the expected dividend yield on the S&P 500 is 5%, what should the 1-year maturity futures
price be?
Futures price
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