Futures Fair Value Question?

Discussion in 'Index Futures' started by Trend Fader, Jul 7, 2005.

  1. In a perfectly liquid market.. would the ES be trading exactly at the same price as the current futures contract?
  2. no you have to factor in dividends and interest rate. Look on the cme website it tells you the calculation
  3. Let me ask this question then.. in a perfectly liquid market can the futures ever deviate from fair value?
  4. nkhoi

    nkhoi Moderator

    not for long with all kind of auto program waiting at every ticks to arb that.
  5. I guess the answer is that they would never deviate.