Fair Values
The theoretical prices generated by an option pricing model (i.e. , the Black-Scholes option pricing model).
The hierarchy ranks the quality and reliability of information used to determine fair values, with level 1 inputs being the most reliable and level 3 inputs being the least reliable. Information based on direct observations of transactions (e.g.
The London fixings tend to force Chicago based futures markets into a re-alignment program at 06:00 EDT that replicates the newly set fair values on oil, gold, and lending rates, and by default tends to then impact Usd based currency values.
For one thing, for index investing to make sense at all, the stocks that make up that index have to be trading somewhere near their fair values. As the recent "lost decade" amply proved, that's not always the case.
Friendly Takeover: A merger supported by management and directors of the target company. The board of directors recommends to shareholders the acceptance of the takeover offer since it represents fair values for the company's shares.
This means that a banks obligation, in the event of the default or insolvency of one of the parties, would be the net sum of all positive and negative fair values of contracts included in the bilateral netting arrangement.
 See also: Fair value, Market, Trading, Stock, Shares
  
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