Eurocurrency futures are:
A)derivatives based on foreign currency exchange rates.
B)short-term interest rate derivatives based on LIBOR or other similar rates.
C)agreements to purchase specific foreign currencies at specific rates at specific dates in the future.
D)derivatives based on the law of one price.

Question

Quizplus · Accepted Answer

Eurocurrency futures are short-term interest rate derivatives based on the London Interbank Offered Rate (LIBOR) or other similar rates. They allow investors to hedge against changes in interest rates for loans and investments denominated in foreign currencies.

Eurocurrency Futures Are