The Players anticipate cash going lower. Futures can get the price represented faster than the cash... takes a few minutes for trades to be reflected on the tape and to be included in the indices. That's also the primary reason that the futures usually leads the cash.
>>>>>>Why are S&P futures trading below cash? That means there is a mega-bug in the Index Arbitrage Program. It is working in the wrong direction. Call the pest control people.
fair value is not always positive. it is based on expiration date of the derivative, any dividend flow realized by the underlying and your interest rate. why is there so much disinformation on these boards????