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| There are options models.. such as the Black Scholes.. http://en.wikipedia.org/wiki/Black-Scholes
that the trade uses to determine the "fair price" for an option usually given: a) the time remaining b) the volatility and c) the underlying asset value (the futures price.)
Given that the options market was trading you can solve this backwards and determine where "the market" was placing the value of the futures markets. | |
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synthetics
