How Do You Price Eurodollar Futures?
Eurodollar futures prices are expressed numerically using 100 minus the implied 3-month U.S. dollar LIBOR interest rate. In this way, a eurodollar futures price of $96.00 reflects an implied settlement interest rate of 4%. what is Eurodollar rate? A Eurodollar future is a cash settled futures contract whose price moves in response to the interest … Read more