Eurodollars as Risk Management Tools

Common Applications of Eurodollar Futures and Options

This 11-page report explains how to use Eurodollar futures and options to manage risk related to interest rates, which have experienced unprecedented fluctuations in recent years. It provides:

  • An overview of Eurodollar futures as an essential element of risk management programs on the part of borrowers, such as corporations, and investors, including asset managers
  • A review of common applications of Eurodollar futures and options for purposes of pricing and hedging floating rate loans, money market assets, and over-the-counter interest rate swap transactions

Eurodollars as Risk Management Tools also covers:

  • Changes in swap, Libor and fed funds rates from Dec. 2003 to Dec. 2010
  • Measurements of risk
  • Basis point value of money market instruments
  • Interest rate swaps
  • Hedging swaps
  • Caps, floors and collars
  • Detailed interest rate charts

Read the Report