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suppose the value of the S&P stock index is currently 1400. If the 1-year T-bill rate is 3% and the expected dividend yield on the

suppose the value of the S&P stock index is currently 1400. 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? What if the T-bill rate is less the dividend yield, for example 1% ?

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