Because the quotation of Eurodollar is 100-R, but the price formula is p =10000 * [100-0.25 * (100-r)] Note that R in the formula is Eurodollar lending rate, and it has no percent sign, because it is multiplied by.

It is difficult for many people to understand why the quotation and price formula seem to be different. You can understand R here as the discount rate. The quotation here is actually the present value discounted in years, but the price formula needs to convert years into three months, so there is a coefficient of 0.25. The quotation of 100-R represents the euro with face value of 100. Calculated by the discount rate r (annual discount rate), the present value should be 100-R yuan.

Eurodollar futures refers to Eurodollar futures developed and launched by Chicago Mercantile Exchange in February, 198 1.

After development, Eurodollar futures has become one of the most liquid and popular contracts in the global financial futures market.

Eurodollar futures is a cash settlement futures contract, and its price changes with the interest rate of dollar-denominated deposits held by European banks.

Investors such as companies or banks can lock in the interest rate level of funds that may be lent and borrowed in the future through this contract.