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Suppose the value of the S&P 500 stock index is currently 1,900 . a. If the 1-year T-bill rate is 6% and the expected dividend

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Suppose the value of the S\&P 500 stock index is currently 1,900 . a. If the 1-year T-bill rate is 6% and the expected dividend yleld on the S\&P 500is5%, what should the 1-year maturity futures price be? b. What If the T-bill rate is less than the dividend yleld, for example, 1\%? The T-bill rate is less than the dividend yleld, then the futures price should bel

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