Fed funds options continue to return to something approaching normalcy

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As I did yesterday, I focus on CBOT binary call options at a strike price of 94750. As of 3pm:

Sept07 down 9, currently at 13
Oct07 down 7, currently at 25
Dec07 up 3, currently at 35

As an aside, a put option with a strike of 94750 last traded at 3 points, up 2 from yesterday. That's a contract that pays if the target fed funds rate is higher than the current 5.25% after the December meeting.

I call the last couple weeks, "Denial."

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This page contains a single entry by William Polley published on August 8, 2007 3:29 PM.

Fed funds options reflect changed outlook was the previous entry in this blog.

NY Times science question corrected... sort of is the next entry in this blog.

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