SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?


To: Dell-icious who wrote (50955)8/27/1998 8:37:00 PM
From: ViperChick Secret Agent 006.9  Read Replies (2) | Respond to of 58727
 
Dell....

you can read this site for some info on the Prem....
programtrading.com

some people use the word Prem and Fair Value interchangably (is this a word???..and if it is I sure know its not spelled right)

anyway..they arent the same...

and you can get info on it from that site

one time Kevin posted a long and complicated post about how Fair Value is calculated...maybe someone still has that link...it was too far above my head to keep as a bookmark...although I am sure I printed it out and put it in a pile

-------------------

candles
csta.org



To: Dell-icious who wrote (50955)8/28/1998 1:34:00 AM
From: ratan lal  Respond to of 58727
 
$PREM is the Difference between the S&P Futures and the S&P Cash.

S&P cash is calculated based on the price of the 500 equities that form the S&P while the S&P futures are a gamble as to where the S&P cash will be. Typically the $PREM remains within a range on any given day but keeps losing value as it approaches expiration.

Futures expire in March, June, September and December.