If Eurodollars..

Discussion in 'Trading' started by Optional, Nov 18, 2009.

  1. can trade above 100, will you buy them?
  2. rosy2


    if corn can trade below zero would you sell it.
  3. Corn can't trade below zero. Negative interest rates means 100 plus on Eurodollars. Its possible.

  4. How is a negative interest rate possible? Eurodollars at 100 means that LIBOR is 0%. No bank would pay another bank for the "privilege" of lending money. We can have negative real interest rates but that's another story.
  5. It would amount to a "storage charge" for money to keep it in a bank for "security". :cool:
  6. Negative LIBOR has happened before, in Switzerland and Japan. Moreover, with a negative CB depo rates, anything is possible. Finally, don't confuse LIBOR with the actual rates at which the banks fund themselves.

    In answer to the original question, no, I wouldn't buy 'em.
  7. Daal


    The options have strikes going above 100. It can go there, I'm hoping it does
  8. which options? I've heard that, but can't find the strikes or option chains above 100
  9. Daal


    GE(CME eurodollars)
  10. Options are a different kettle of fish entirely... There's absolutely no reason to believe that par calls can't be worth a few ticks. That has happened before in both Eurodollars and Euroyen (in 2001, if memory serves).
    #10     Nov 19, 2009