I would like to understand the concept of theoretical price of future contract used in the question. Second and third part are clear.
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Therotical futures price= spot price(1+Rf)- Dividend,
125(1+.080)-4= 135-4= 131
No of shares in one lot= 1000
Futures price for 1 contract=1,31,000
Cost of carry= time value+ storage cost- dividend- conveyance yield
In the q it is assumed dividend is distributed at the end of the year.