Question: Looking for help in solving the attached query. Many Thx! a) Using the information below, please measure the fair value of the September 2021 futures
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 Expiration Actual Price Days to Exp LIBOR Rate in % Div Yld in % July 19 Index S&P 500 4,258.9 September Future 17 September 21 4,251.2 61 0.11 1.53 b) Is the futures contract rich or cheap? How mispriced is it? c) What does that say about where investors believe the market will open on July 20th
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