Posted by padraigm on 15th of Dec 2009 at 11:25 am
The difference is the time value of money. If you own cash
S&P you collect the dividends. The forward always trades at a
discount to reflect this difference. Over the next 90 days they
will converge to each other.
The difference is the time
SPX Future and Cash discrepancy
Posted by padraigm on 15th of Dec 2009 at 11:25 am
The difference is the time value of money. If you own cash S&P you collect the dividends. The forward always trades at a discount to reflect this difference. Over the next 90 days they will converge to each other.
Thank you, it makes sense for me
Posted by flmaia on 15th of Dec 2009 at 11:41 am