Equity futures fair value
Fair Value Information Services are designed to provide you with various information that can be used to estimate a price for an equity security, equity index futures contract 1, or equity option * that would likely prevail in a liquid market in view of market information available at the time of each security’s evaluation. That means if the futures are plus 5 for the morning, and the fair value number is plus 10, then stocks could actually open lower. The futures contracts are below the fair value number. Conversely, if futures are plus 30 and fair value is plus 10, futures are above fair value and stocks may open higher. However, under the fair value option to the equity method, you recognize as income changes to the stocks’ fair value rather than your share of investee income. You treat dividends as income under