Suppose the value of the S&P 500 Stock Index is currently $2,150. If the one-year T-bill rate is 4.6% and the expected dividend yield on the S&P 500 is 4.2%.

a.	What should the one-year maturity futures price be? (Do not round intermediate calculations.)

Futures price

$

b.	What would the one-year maturity futures price be, if the T-bill rate is less than the dividend yield, for example, 3.2%? (Do not round intermediate calculations.)

Futures price

$