Long eurodollar futures short eurodollar futures


Problem:

Suppose now you are certain that the 3-month LIBOR in future will be much higher than what the market expects. Which strategy to use? Long Eurodollar futures Short Eurodollar futures Long Fed Funds futures Short Fed Funds futures

Explain in detail and please provide all calculation and formulas.

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Finance Basics: Long eurodollar futures short eurodollar futures
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