Hi there, I am trying to learn about Fair Value Basis trades (FVB) and Exchange for Physical (EFP) markets. Appreciate if any of you could kindly assist me with some information on this to aid my understanding. What what i understand so far, fair value basis trades are booked to convert the value of futures booked from LAST price to theoretical and this is achieved by booking a long zero strike call on the index with a short zero strike call on the basket. I do not have a good understanding on the EFP market but in my current role, we do price testing of index futures using EFP quotes from brokers. When doing this testing, the LAST price of the future is taken into account along with the fair value adjustment (FVB trade) and compared with the EFP quote on the future from the broker. Thanks in advance to anyone who can assist in piecing the puzzle together for me.