Eurodollar option contracts were listed by the Chicago Mercantile Exchange in March 1985. The first options had quarterly expirations and expired on the same date as their underlying futures contract. Over time, the CME has added serial options, mid-curve options, and options on the 5-year bundle. Eurodollar options trade on the Exchange floor and electronically through GLOBEX.
The purpose of this chapter is to introduce Eurodollar options by covering the:
• Grid of available option expirations and underlyings
• Contract specifications
The owner of a Eurodollar call option has the right, but not the obligation, to buy the underlying Eurodollar futures contract ...