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Financial Risk Manager Part 2

Financial Risk Manager Part 2

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At initiation of a repurchase agreement (repo), counterparty A sells a security to counterparty B for settlement on June 1st, 2015 at an invoice price of USD 180 million. At the same time, counterparty A agrees to repurchase the security three months later, for settlement on September 1st, 2015, at a purchase price equal to the original invoice price plus interest at a repo rate of 0.90%. Using the actual/360 convention of most money market instruments, which is nearest to the repurchase price?

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