In a particular day, the September S&P 500 stock index futures was priced at XXXXXXXXXXThe S&P500 index was at XXXXXXXXXXThe contract expires 73 days later.a)Assuming continuous compounding, suppose...

In a particular day, the September S&P 500 stock index futures was priced at 960.50. The S&P500 index was at 956.49. The contract expires 73 days later.a)Assuming continuous compounding, suppose the risk-free rate is 5.96 percent and thedividend yield on the index is 2.75 percent. Is the futures overpriced or underpriced?b)Assuming annual compounding, suppose the risk-free rate is 5.96 percent and the futurevalue of dividends on the index is $5.27. Is the futures overpriced or underpriced?