Suppose the value of the S&P$/$TSX $60$ stock index is currently $955.$

$1-$a$.$ If the $1-$year T$-$bill rate is $3\%$ and the expected dividend yield on the S&P$/$TSX $60$ index is $3\%,$ what should the $1-$year maturity

futures price be$?($Omit the $"$$$"$ sign in your response.$)$

Futures price

$1-$b$.$ What should the $1-$year maturity futures price be if the T$-$bill rate is less than the dividend yield, for example, $1\%?($Round your

answer to $2$ decimal places. Omit the $"$$$"$ sign in your response.$)$

The T$-$bill rate is less than the dividend yield, then the futures price will be

diamond. The futures price will be $