Business, 17.12.2019 01:31, mack5628

Suppose the value of the s& p 500 stock index is currently $1,500. if the one-year t-bill rate is 3.2% and the expected dividend yield on the s& p 500 is 2.4%.

a. what should the one-year maturity futures price be? (do not round intermediate calculations.) futures price $

b. what would the one-year maturity futures price be, if the t-bill rate is less than the dividend yield, for example, 1.4%? (do not round intermediate calculations.) futures price $

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Suppose the value of the s& p 500 stock index is currently $1,500. if the one-year t-bill rate i...