Answer and explain the following:
A stock has a current price of $125/share and the T-Bill rate is 1%.
A. If the stock does not pay a dividend, what should be the price of a one-year futures contract on the stock?
B. If the stock does not pay a dividend, what shoule be the price of a three-year futures contract on the stock?
C. If the stock pays an annua dividend of $5, what should the one-year futures price be?