A _________ future is a cash-settled futures contract for a three-month $1,000,000 eurodollar deposit that pays LIBOR.
A)forward
B)eurodollar
C)forward rate agreement
D)currency swap

Question

Quizplus · Accepted Answer

A eurodollar future is a futures contract based on the interest rate paid on US dollars deposited in banks outside the US. In this case, the futures contract is specifically for a three-month $1,000,000 eurodollar deposit that pays LIBOR.

A _________ Future Is a Cash-Settled Futures Contract for a Three-Month