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Alt L(10 points) Mr. Bond buys five S&P 500 E-mini index futures with 4 months...

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Alt L(10 points) Mr. Bond buys five S&P 500 E-mini index futures with 4 months to maturity. The current index level is 1545 and the risk-free interest rate is 5% per year. (Note: S&P 500 E-mini index futures has a contract size of $so.) a) (3 points) If the index pays dividend with 2% yield per year, what is the fair price of the futures when Mr. Bond buys the future? b) (3 points) Suppose Mr. Bond buys the future at the price in (a) and has to put each futures contract he buys. The margin $25,000 into the margin account for account pays interests at the risk-free rate. What's the beta of Mr. Bond's futures investment? (4 points) Suppose the index future's price is 1588 when Mr. Bond buys the future. c) What would be your suggestion for Mr. Bond

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