Question

Which of the following statements is INCORRECT? Eurodollar is a U.S. dollar deposited in a U.S....

Which of the following statements is INCORRECT?

Eurodollar is a U.S. dollar deposited in a U.S. or foreign bank in Europe only

The 3-month Eurodollar futures contract locks in the interest paid on Eurodollar deposit over the next three months

If the 3-month LIBOR rate is 3%, the Eurodollar futures quote will be 97

The 3-month Eurodollar futures contract is traded by the CME Group in the U.S.
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Answer #1

United States dollar deposited in United States or foreign bank in Europe or other parts of the world is Euro Dollar.

Euro dollar is US dollar deposited in in United States or anywhere in the foreign bank including Europe so it is not about just Europe.

All other statements about 3 months libor & 3 months Eurodollar are true

Correct answer will be option (A ) Euro dollar is a United State dollar deposited in a United State of foreign bank in Europe only.

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