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To: Patrick Slevin who wrote (44041)	5/29/1998 10:16:00 AM
From: ViperChick Secret Agent 006.9	Read Replies (2) \| Respond to of 58727

but he is talking the end of October during the crash....we are only at the end of May right now his point would be to watch how other futures contracts play out in a mini crash...

To: Patrick Slevin who wrote (44041)	5/29/1998 10:54:00 AM
From: Follies	Read Replies (1) \| Respond to of 58727

The "fair value" on futures contracts is equal to the current SPX index plus interest computed to the delivery date. for example June SPX futures premium today should be SPX5.4%(15/250)= SPX*.00324 = 3.56 premium. When the market changes course rapidly buying or selling comes in to the futures market first causing the the premium to go up or down above or below fair value by a substantial amount (thats when the arbitrageurs step in). When we had the turn on Wednesday premium went to 9 or more.