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Before considering any investment, you should learn all you can about that investment. Therefore, we provide these calculators as it would be beneficial for you to gain an insight into how Single Stock Futures are priced. Below, we provide access to several calculators for your benefit in this pursuit. You may use these not only to calculate fair value SSF prices, but also to gain some insight into how changes in the different pricing factors of the fair value calculation might affect the price of a Single Stock Future. These factors are: underlying stock price, time until expiration, interest rate, and dividends. Together, they represent the “cost to carry” the underlying security until the future expires.
When you access these calculators, we encourage you to open the instructions, enter our sample input values, and follow along the discussion. As well, enter other input values of your choosing to test how changing price, time, interest rate, and dividends can affect SSF pricing.
This calculator allows input of the four factors that influence the value of a Single Stock Future: underlying stock price, interest rate, dividends, and days until expiration. For simplicity, you are required to input only one interest rate, dividend amount, and days until first ex-dividend date. The calculator will assume that each subsequent dividend amount will be the same, and that subsequent dividend dates (until the future expires) will occur at 90-day intervals.
This calculator allows input of the four factors that influence the value of a Single Stock Future: underlying stock price, interest rate, dividends, and days until expiration. However, this version of the Fair Value Calculator will also allow input of discrete dividend amounts for three payments into the future (to accommodate changing dividends), as well as specific dates for these dividends. As well, this calculator will allow input of specific interest rate amounts for the periods between these dividends.
This calculator provides a means to calculate the number of days from any specific date until payment of a dividend (if any) and/or expiration of the future contract.
This calculator is provided in anticipation of the introduction of a Security Futures Product overlying a narrow-based equity index. It allows input of the four factors that influence the value of a Single Stock Future: underlying stock price, interest rate, dividends, and days until expiration. However, because an index’s component stocks can each pay specific dividend amounts at discrete intervals, for simplicity we allow input of a dividend yield.
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