I need help with calculating and understanding the profit I’d make if I was short the Jun '23 Eurodollar futures contract @99.275. I believe that it’ll move to 98.75, which should net me a profit of 0.525*2500=1312.5. However, I’ve been reading up on these contracts and was wondering when I should account for days to expiration into my calculations, or if that would only be if I were hedging a loan with the Eurodollar futures.
Also, if I were long the contract, how would I make a profit if the LIBOR rate stays the same? How is the profit realized? Does the futures contract increase in value before it’s rolled into the next futures month, or is the LIBOR rate already priced into the futures contract, and the contract is just used for locking in LIBOR rates?