DAX Undervalued?

Discussion in 'Index Futures' started by verynewboy, Jul 21, 2006.

  1. Did anyone else notice that the DAX futures have become undervalued wrt the cash index today?
     
  2. mauzj

    mauzj

    Yeah. I bought a load and made some cash. Nice.
     
  3. During recessions/depressions, the futures trade with a discount to cash index. It is not a buy signal per se.
     
  4. Why would that be?

    Isn't the theoretical futures price a function of the price, risk free rate, expected dividends and time. I can't remember the equation off the top of my head but it's on the Eurex site somewhere

    Wouldn't dividends and the risk free rate need to be under zero?

     
  5. Good call! The Dax is now up 1.76%.