Why are S&P futures trading below cash?

Discussion in 'Index Futures' started by NYNY, Jan 24, 2003.

  1. NYNY


    could someone explain this to me? Isn' t fair value positive?
  2. gnome


    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. :D
  3. Because MSFT started to pay dividends to their stockholders. :D
  4. nkhoi


    that mean we have no future :mad:
  5. omcate


    >>>>>>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.

    :p :p :p
  6. 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????
  7. Minime


    The futures are heading for the door. Last one to leave please turn out the lights.:D
  8. No. There is no such disinformation. :D
  9. Too many experts...
    #10     Jan 24, 2003