The risk free rate is 3% annually compounded.

The beta of an asset with respect to the market portfolio is 1.5.

The expected return on the market is 6% annually compounded.

The futures price of a futures contract on the asset with 6 months to its delivery date is $200.

The expected future spot price of the asset on the futures contract's delivery date is closest to:

a.

$204.32

b.

$203.25

c.

$198.56

d.

$195.78