It stands for Eurodollar option; a money market futures option which is based on Eurodollar futures. It is among most actively traded, exchange-listed interest rate options worldwide. This type of options allows investors to limit losses while still having the access to potential profits from favorable changes in the prices of underlying futures. All Eurodollar options are American-style, i.e., the options may be exercised on or before expiration date.

In addition to quarterly and serial Eurodollar options, there are also mid-curve options, which are short-dated, American-style options based on Eurodollar futures contracts in the second, third and fifth years of expiration.

The Eurodollar option is also called a Eurodollar futures option.