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How do I change the interest rate?

You can change the applicable interest rate in a variety of ways. Suppose, however, you want to change the applicable interest rate throughout your system. Given the options you trade, you need an interest rate based on the Eurodollar future. You can change the interest rate using the Global Option Parameters menu. To do this, follow these steps:

1. Clear the screen (type .CLEAR and press b).

2. Enter the .OPARAM command.

The Global Option Parameters menu is displayed. The Interest field reads future, so you do not need to change it. However, the value of the Treasury Bill is the interest rate. If you want to use the Eurodollar, you must change the instrument symbol (TB#) in the Rate field to ED#:

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3. Open the Rate field.

images/bopt200090000.gif Click the left mouse key once on the Rate field.

images/bopt200090000.gif Use the arrow keys to move the highlight to the Rate field and press b.

4. Enter the symbol you want to use.

If you want to use the lead month of a particular contract, include the Pound Sign macro in the symbol, for example, ED#.

5. Select Done.

By default, all quote windows and options charts will now use these parameters. However, these are only the defaults. You can also change these parameters on the window, underlying instrument, and individual option levels. For example, if you have a quote window governed by global parameters, changing the interest rate future from Treasury Bills to Eurodollars will directly affect your quote window. By contrast, if your quote window uses parameters set on the quote window level, changing the interest rate future on the global level does not affect your quotes.

You can change any parameter on the Global level. Whether you should is another question. For example, changing time to expiration on the global level makes less sense than changing the volatility type, or the instrument used to evaluate interest rate. The point is, having the ability to change a global parameter doesnt make it a good idea. The Global Option Parameters menu is a very powerful tool. Make sure you set the global parameters you use most often.