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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?


To: Tom Trader who wrote (30489)12/5/1997 2:32:00 PM
From: Esteban  Read Replies (1) | Respond to of 58727
 
Tom,

I know about arbitrage trading and that's not the point I'm trying to make or understand.

Simply stated (I hope), is there a bearish bias to the futures market based on the decline in fair value from contract inception to expiration?

Forget about being able to profit from it or not, I'm just trying to understand the system. That's why I originally painted the scenario of holding the two contracts until expiration. The point is the underlying cash did not change in value, but the 2 futures contracts did change, one positively and one negatively.

Are your eyelids getting heavy? I'm probably boring everyone to tears.

Esteban