The SP 500 futures contract is scheduled to expire in half a year, and the interest rate for carrying stocks over that period is 8%.

The S&P 500 futures contract is scheduled to expire in half a year, and the interest rate for carrying stocks over that period is 8%. The expected dividend rate on the underlying stocks for the same period is 2% of the value of the stocks (the 2% is the half-year rate, not an annual rate). Ignoring the interest that it might be possible to earn on the dividend payments, find the fair value for the futures if the current value of the index is 970.00.