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Hi All,Im writing a quick routine to calculate implied vols for options on EUR$ futures with Bloomberg data. My question concerns the part where I have all my inputs and am ready to pass them to my implied vol function. Assume we have the following market quotes (example ticker: EDK1C 98.750 Comdty): Strike = 98.750 Underlying Spot = 99.7050 Option Price = 0.9550When passing these to my function, do I convert the Underlying spot and strike to S = (100 - Underlying Spot)/100 and K = (100 - Strike)/100 respectively and use the market option price as is so our implied vol method is some function IV = f(S, K, Option Price, ...) OR convert the option price to oP = 100 - (Option Price)*100 and leave the spot and strike such that our implied vol method is some function IV = f(Strike, Underlying Spot, oP, ...) ???I believe the former to be correct but it yields negative strikes which lead to numerical issues. Any feedback is appreciated.Thanks.

QuoteK = (100 - Strike)/100??QuoteOR convert the option price to oP = 100 - (Option Price)*100???What are these transformations? The option price is the option price, the strike is K, the spot is S. I don't understand what you are trying to do.

EUR$ futures are quoted such that Price = 100 - 100*futures rate. Hence this rate would befutures rate = (100 - Price)/100When valuing options on IR futures you have to make such transformations before applying to your pricing model.

OK, I understand the need to convert from futures price to interest rate space. But if you get a negative strike you are not doing it right.