Money market futures contracts and futures options are traded on organized exchanges which set and enforce trading rules. A money market futures contract is a standardized agreement to buy or sell a money market security at a particular price on a specified future date. There are actively traded contracts for 13-week Treasury bills, three-month Eurodollar time deposits, and one-month Eurodollar time deposits. There is also a futures contract based on a 30-day average of the daily federal funds rate. A money market futures option gives the holder the right, but not the.
