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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (6197)	5/29/2002 8:01:41 AM
From: Louis V. Lambrecht	Read Replies (3) \| Respond to of 33421

John - I really need to spend more time on the interest rates. <vbg> In fact, top of the list of priorities. However, the data speak Chinese to me. I expect a position on an interest future to be a leg of a hedge. The other leg could be a swap, a Libor, T-Notes or bills, or a calendar spread. I also can't figure out how I should use my fair value price. Eurodollar Jun 2002 (9806) vs. Jun 2003 (9586) read in my pidgin 220 bpts. 13-weeks bill June (98.26). For June, I could sell a 13 weeks bill, buy Eurodollar June and make 20 bpts doing nothing. Where I must make a mistake is: if I buy Jun 2003 Eurodollar, I could sell it in one year and make 2.2% profit. Obviously an error. This page means zilch to me: futuresource.com Can you give me a hint? Direct me to a swaps for dummies site? Already marked the ISDA isda.org The Merc of course: cme.com