A single stock futures contract on a nondividend-paying stock with current price $200 has a maturity of one year.
a. If the T-bill rate is 5.2%, what should the futures price be?
b. What should the futures price be if the T-bill rate is still 5.2% and the maturity of the contract is three years?
c. What if the interest rate is 6.9% and the maturity of the contract is three years?