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Since futures contracts on a market index expire only once a month, Fair Value is the Forward Value (at the time of a futures contract expiration) of an index spot price, where compounding takes into account time to expiration and dividends lost due to holding index futures rather than underlying stocks. If Fair Value before the open is lower than the futures contract price, you may expect that a market index will go higher after the opening bell.

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Q: How is Standard and Poors 500 Index's Fair Value calculated?
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