Futures price of Eurodollar futures
Futures
| INTEREST RATES | LAST | CHG |
|---|---|---|
| Eurodollar | 96.0550 | 0.0050 |
| U.S. 2 Year | 104.313 | -0.016 |
| U.S. 5 Year | 110.445 | -0.031 |
| U.S. 10 Year | 116.203 | 0.016 |
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%, or 100 minus 96. Price moves inverse to yield.
What is Eurodollar CME?
Specs. As the fundamental building block of the financial market, Eurodollar futures and options are the preferred tool of traders to express views on future interest rate moves. With unrivaled book depth and deep liquidity out more than five years, you can effectively target interest rate risks that matter to you.
What happens to Eurodollar futures after LIBOR?
2. What happens to open Eurodollar options positions upon the cessation of USD LIBOR from end-June 2023? Trading in Eurodollar options will be terminated and all open positions will be converted on a 1:1 basis into same month/expiry CME options on SR3 futures with a 25 bp higher price strike.
What is the Eurodollar rate?
Also known as LIBOR rate. This rate is equal to the Eurodollar base rate, adjusted for the maximum reserve requirements lenders are required to maintain on their Eurodollar deposits.
What is the current Eurodollar rate?
Futures
| INTEREST RATES | LAST | % CHG |
|---|---|---|
| Eurodollar | 98.1650 | -0.02% |
| U.S. 2 Year | 103.945 | -0.56% |
| U.S. 5 Year | 109.758 | -0.99% |
| U.S. 10 Year | 115.234 | -1.35% |
Why is it called Eurodollar?
Because they are held outside the United States, eurodollars are not subject to regulation by the Federal Reserve Board, including reserve requirements. Dollar-denominated deposits not subject to U.S. banking regulations were originally held almost exclusively in Europe (hence, the name eurodollar).
How does the Eurodollar market work?
Eurodollars refer to U.S. dollars that are deposited in foreign banks. Say, for example, that someone deposits $5,000 into an account in Brazil. That money is considered eurodollars. It’s also eurocurrency because it is money issued by one government and deposited into an account located in a different country.