Hey guys. Can someone explain me why can’t we price Eurodollar futures like T-Bill ones? The Book tells because Eurodollar deposits are add on instruments but futures contracts on them are quoted as discount instruments. So what? Pricing T-Bill futures the Book produces the equation : f0(h) / B0(h+m) = 1 / B0(h) where: f0(h) - futures price (the one wee need) B0(h+m) - price of h+m T-Bill on day 0 B0(h) - price of h T-Bill on day 0 T-Bill’s futures price is then calculated with this equation. Ok, why can’t we do such a thing with Eurodollar futures? The Book says that we will never know m-day LIBOR on h day when we are ctually at day 0 (today). But I can’t see why do we need this rate. Pricing T-Bill futuress we had not needed any rates in future so why do we need it for Eurodollar futures? Why can’t we price in the same way: f0(h) - futures price (the one wee need) B0(h+m) - price of h+m Eurodollar deposit on day 0 (h+m day LIBOR is known on day 0) B0(h) - price of h Eurodollar deposit on day 0 (h LIBOR day is known on day 0)