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To: sammaster who wrote (89708)4/4/2001 9:20:22 AM
From: timers  Read Replies (1) | Respond to of 436258
 
fair value is the ah close of the mkt as opposed to the 4 oclock close. if 15 min after close is higher on qqq or whatever then fair value is higher. it's only fair.



To: sammaster who wrote (89708)4/4/2001 9:36:58 AM
From: IceShark  Respond to of 436258
 
The short version is fair value is the calculation of where the futures should be valued given time to contract expiry, interest rates, dividends (LOL!) and where the underlying equities are trading. This is where the infamous program trading comes into play. If the actual price moves off too far from fair value you can quick try and arb the difference between the futures market and the equity market.