Suppose the value of the S&P 500 Stock Index is currently $3,350. a. If the one-year T-bill...

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Finance

Suppose the value of the S&P 500 Stock Index is currently$3,350.

a. If the one-year T-bill rate is 4.6% and theexpected dividend yield on the S&P 500 is 4.2%, what should theone-year maturity futures price be? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)

b. What would the one-year maturity futures pricebe, if the T-bill rate is less than the dividend yield, forexample, 3.2%? (Do not round intermediate calculations.Round your answer to 2 decimal places.)

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Suppose the value of the S&P 500 Stock Index is currently$3,350.a. If the one-year T-bill rate is 4.6% and theexpected dividend yield on the S&P 500 is 4.2%, what should theone-year maturity futures price be? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)b. What would the one-year maturity futures pricebe, if the T-bill rate is less than the dividend yield, forexample, 3.2%? (Do not round intermediate calculations.Round your answer to 2 decimal places.)