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Problem 3 The quoted Eurodollar futures price for Dec 2020 is at: 98.10. If you short 37 contracts and suppose the actual Libor rate at
Problem 3 The quoted Eurodollar futures price for Dec 2020 is at: 98.10. If you short 37 contracts and suppose the actual Libor rate at expiry in Dec 2020 was 1.750%... a) How much money could you win or lose? b) Was this strategy bullish or bearish? Was your view on interest rates bullish or bearish? Give a detailed explanation in your own words
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