This is the closest thing I could find regarding the calculation. However, I still don't quite "get it". http://www.markrosa.com/UNO Finance 2302/fair_value.htm This morning the Dow futures are up 59, but the fair value shown is -12. Can someone show me how to compute the -12 ?
Fv is where the futures should be to equal their cash value +\- the forward basis (over interest rates and divs). In practicality -12 means that if the futures were down 12 you would expect a flat open. +59 means you expect the market to open up 72