I guess this is a simple one for experts: Looking now (12noon CET Nov 7, 2014) at the DAX ^GDAXI on yahoo finance, it says S = 9.361. The Future FDAXM5.EX quotes F = 9.388.
- What is the exact contract specification - does the buyer promise to buy the index in half a year? For which price - the current S = 9.361?
- If so, why is F not more than S?
- What is the theoretical formula? I thought the price F of the future on the underlying S should be F = S exp(r Delta_t). Given the interest rate r is today about 0.5% p.a. and Delta_t is about 0.5, I should expect about F = 9.361*exp(0.25%), but at least more than S.