If Eurodollars..

[Optional]

can trade above 100, will you buy them?

 

[rosy2]

if corn can trade below zero would you sell it.

 

[Optional]

Corn can't trade below zero. Negative interest rates means 100 plus on Eurodollars. Its possible.

Quote from rosy2:

if corn can trade below zero would you sell it.

 

[KrispyKreme50]

Quote from Optional:

Corn can't trade below zero. Negative interest rates means 100 plus on Eurodollars. Its possible.

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.

 

[nazzdack]

Quote from KrispyKreme50:
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.

It would amount to a "storage charge" for money to keep it in a bank for "security".

 

[Martinghoul]

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.

 

[Daal]

The options have strikes going above 100. It can go there, I'm hoping it does

 

[Optional]

Quote from Daal:

The options have strikes going above 100. It can go there, I'm hoping it does

which options? I've heard that, but can't find the strikes or option chains above 100

 

[Daal]

Quote from Optional:

which options? I've heard that, but can't find the strikes or option chains above 100

GE(CME eurodollars)

 

[Martinghoul]

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).