You want to get exposure to the stock market but do not know what stocks to buy. You decided to buy an S&P500 futures contract that expires in 6 months. You notice that the S&P500 is $4,200 and pays a dividend of 2.5%. The yield on a 6-month T-Bill is 5%.

What is a fair price for the futures contract?

a. $4,147

b. $4,200

c. $4,306

d. $4,253