Short-term interest rate future?

CFA Level I
#1

Which of the following is an example of a short-term interest rate future? a. Treasury bond futures contract. b. A bond index futures contract. c. Eurodollar futures contract. d. Forward Rate Agreement (FRA).

#2

a

#3

Any other guesses?

#4

I would say c there are 1mo e$ contracts where ust are march/june/sep/dec

#5

Lets say if mike’s first post in this forum is correct! Welcome aboard.

#6

for short term interest rates I would look for a TBill future but since it is not present I would say C as well

#7

Current notional open interest in ED futures = $10,000,000,000,000 Current notional open interest in TB futures = (approx) 0 Think you should go with ED.

#8

JoeyDVivre Wrote: ------------------------------------------------------- > Current notional open interest in ED futures = > $10,000,000,000,000 > Current notional open interest in TB futures = > (approx) 0 > > Think you should go with ED. Thanks

#9

mike11 Wrote: ------------------------------------------------------- > I would say c there are 1mo e$ contracts where ust > are march/june/sep/dec ED contracts are for 3-month Eurodollar. There also exist 1M LIBOR contracts.

#10

D FRA Kindly correct where wrong

#11

An FRA is not a futures contract - it’s an OTC derivative

#12

Great. Yes it is C.

#13

Yes C, I agree.

#14

The Eurodollar futures contract refers to the financial futures contract based upon these deposits, traded at the Chicago Mercantile Exchange (CME) in Chicago. Each CME Eurodollar futures contract has a notional or “face value” of $1,000,000, though the leverage used in futures allows one contract to be traded with a margin of just hundreds of dollars. Trading in Eurodollar futures is extensive, thus offering uniquely deep liquidity.