fair value

fair value definition - finance
  1. The price that an asset or investment can be bought or sold at. Quoted market prices of instruments traded on exchanges give an accurate reading of fair value.
  2. The theoretical value of a futures or options contract that is derived from a mathematical valuation model. Also called non-arbitrage value.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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