The Eurodollar futures contract refers to the financial futures contract based upon these deposits, traded at the Chicago Mercantile Exchange (CME). ... CME Eurodollar futures prices are determined by the market’s forecast of the 3-month USD LIBOR interest rate expected to prevail on the settlement date.
Compared to commodity futures whose futures prices are determined by the price of underlying commodity in the future, I was wondering why Eurodollar futures prices are not determined by the interest rate of the underlying Eurodollar time deposit in the future, but instead by the LIBOR rate in the future?
Or is the price of Eurodollar time deposit determined by the LIBOR rate in some way?
Thanks and regards!