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a. A futures contract on a stock with a current price of $120 matures in six...

a. A futures contract on a stock with a current price of $120 matures in six months. The risk-free rate is 4.5 percent per year and the stock has an annual dividend yield of 3 percent. What is the futures price?

b. Suppose you bought on S $ P 500 contract at a futures price of 4,500. The stock index price is $205 and at maturity, the S & P 500 had fallen to 4020. What is the contract size?

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