A fair value question

S

Sky123987

I understand that fair value is = to Cash + (Interest - Dividends).


Why is AEE(stock) trading higher than AEE MAR futures??
AEE pays a dividend on dec 31 2007, so there are NO more dividends to come until expiration which is mar 20 2008.

I can't figure out for the life of me why the stock is trading higher than the futures
 
Quote from Sky123987:

can someone answer this... this is killing me.


Thank you so much
More...

Shareholders as at 5 March get the March divi also (63.5 cents).
 
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