Fair Value = Cash [1 + r(x/360)] – Dividends
Here, cash denotes the current value of the security, r is the prevailing interest rate charged by the broker, x is the number of days left in the contract, and dividends refer to the number of dividends that the investor will receive before the expiration date.
Fair Value = Cash [1 + r(x/360)] – Dividends\n\n Here, cash denotes the current value of the security, r is the prevailing interest rate charged by the broker, x is the number of days left in the contract, and dividends refer to the number of dividends that the investor will receive before the expiration date.