FRM: Eurodollar futures: introduction
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- เผยแพร่เมื่อ 11 ก.ย. 2024
- Here is an introduction to the Eurodollar futures contract using current quotes to illustrate: Assume we take a long position in a December 2008 Eurodollar futures contract. The quote is 97.005. That means we are "locking in" an annualized LIBOR rate of 2.995% (1100 -- 97.005). The quote of 97.005 corresponds to a contract price of $992,513 (the contract is on a par of $1 million). If the LIBOR rate declines to, say, 2.0% in December, the quote goes up to 98 (100 -- 2) and contract price goes up to $995,000. As a long position, we gained (by design) $25 per 1 basis point decline in the LIBOR. For more financial risk videos, visit our website! www.bionicturtl...
damn, this is incredibly easier to follow than the lectures at my top 10 undergrad b school. thanks dude.
Thanks, appreciate that. The formula is per the design of the contract, so the exchange really sets it. Because somebody wanted a 1 point to equal $25. The 10,000 is used (not uncommonly) to convert a decimal basis point into an integer. For example 1 bps = 0.01% = 0.0001. Well, that's clumsy, so 10,000 * 0.0001 = 1.
David H
David Harper is a wonderful teacher. superbly presented the concept once again!!
Thanks for keeping it simple.
Super teacher!!! I wish I have you at school!! David, great presentation!
Very very good explanation........I follow your vids a lot...very informative...Keep it up
is it possible to attach the sheets that you are using in your presentations, thank you
THANK YOU SO MUCH YOURE A LIFESAVER
Thank you!
Thank you. 100x better than my shitty uni lecturer.
Thank you so much. You are doing a great job.
Thank you so much for your presentation.
Pretty clear! Thx!
You're welcome! We are glad that this video was helpful!
It would be awesome to demonstrate the TED spread trade...nobody has it anywhere. Thanks! Long Treasury short Eurodollar different options 3 months vs longer duration
Thank you
Very well explained
Thanks a lot 👍
really helpful
This means that you are lending $1million at a predetermined rate. If you have a long position.
Amazing.
Great, thank you.
Thank you!! It is really helpful!!
You're welcome!! We are very happy to hear that this video helped you!!
Many thanks...
UserDone...just read the exact same line. So confused, dave harper says one thing dave hall says another. Who's right? There's only one way to find out......
awesome! Thank u!!!
Thank you so much..
You're welcome! Thank you for watching!
very interesting.
thanks!
what does this mean? (the contract is on a par of $1 million)
its really weird reading this comment after 8 months.. how far iv come :)