Question: a) Using the information below, please measure the fair value of the September 2021 futures contract and compare it to its actual price using

a) Using the information below, please measure the fair value of the

a) Using the information below, please measure the fair value of the September 2021 futures contract and compare it to its actual price using closing price data on July 19th. (Please round down to 2 decimal places.) Contract Info July 19 Index September Future Expiration S&P 500 Actual Price Days to Exp LIBOR Rate in % Div Yld in % 4,258.9 17 September 21 4,251.2 61 0.11 b) Is the futures contract rich or cheap? How mispriced is it? 1.53 c) What does that say about where investors believe the market will open on July 20th?

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