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You expect the spot three-month LIBOR rate in December 2020 to be 5.20%. However, the IMM Eurodollar Index for December 2020 Eurodollar futures is 95.54

You expect the spot three-month LIBOR rate in December 2020 to be 5.20%. However, the IMM Eurodollar Index for December 2020 Eurodollar futures is 95.54 today. What's your proper action to trade?

A.

Buy Eurodollar futures.
B.

Sell Eurodollar futures.
C.

Sell S&P 500 Index futures.

You bought December 2020 Eurodollar futures at 95.54. If the spot rate in December 2020 turns out to be 4.77%, how much is your trading profit (ignore margin accounts)?

A. -$775. B. $0. C. $775.

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