/biz/ - Business & Finance

>>20996669
>So it's like a yuro-style option?
Note that you can close a futures contract at any time just like with an American option
>Thus, the pricing of the contract shouldn't be a straight difference on the underlying?
There are a lot of assumptions that go into the pricing of the futures contract but then again there are a lot that go into spot pricing of SPY we just don't think about it much since a lot of it involves market microstructure that aren't that easy to act on by retail traders like us. An easy way to visualize what matters is to look at a direct comparison between SPY and the e-mini S&P futures contract. Here's the last few days and you'll see they are so similar that trying to get additional insight into the futures contract using theoretical understanding is more of an academic exercise than of practical value