ACI
3I0-012 · Question #281
What is the Purchase Price of a repo?
The correct answer is C. The amount of cash actually paid for collateral at the start of the repo. See the full explanation below for the reasoning.
Question
What is the Purchase Price of a repo?
Options
- AThe market value of bond collateral at the start of the repo at the clean price of the bond
- BThe market value of bond collateral at the start of the repo at the dirty price of the bond
- CThe amount of cash actually paid for collateral at the start of the repo
- DThe amount of cash actually paid for collateral at the start of the repo plus repo interest
How the community answered
(39 responses)- A8% (3)
- B13% (5)
- C77% (30)
- D3% (1)
Community Discussion
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