A hedge fund wants to borrow $2,500,000 using a 3 month repurchase agreement. The repo dealer is

Fantastic news! We've Found the answer you've been seeking!

Question:

A hedge fund wants to borrow $2,500,000 using a 3 month repurchase agreement. The repo dealer is quoting a buyback price of $2,533,414.86 and a haircut of 2.49%.

What is the market value of the collateral that the hedge fund must deliver to the repo dealer?

Enter your answer in the box below. Use two decimal places. Do not include the dollar sign, $.

Related Book For answer-question

Global Investments

ISBN: 978-0321527707

6th edition

Authors: Bruno Solnik, Dennis McLeavey

See More Books

Posted Date: Apr 17, 2024 05:00 AM

See More Questions

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
ABC Company has the following mutually exclusive projects. If the company's payback period is 2 years, which of these projects should be chosen? Project A Year 0 -19,500 1 11,500 2 8,750 3 2,500...
Suppose that two stocks whose rates of return are given by the two-factor arbitrage pricing model r= a +31 +42 r2 = 02 +241 +2, where a, and a2 are constants. Furthermore, there is a risk-free asset...
One widely used nonlinear model of competition is the logistic model, where per capita production is a linearly decreasing function of population size. Suppose that per capita production has a...
Make sense of the reason and parts of the accounting report. 8. What are the vital components of a pay proclamation, and how do organizations ascertain net gain? 9. Talk about the job of income...
Nuts and Cholesterol Several studies have been performed to examine the relationship between nut consumption and cholesterol levels. Here we consider two such studies. In Study 1, participants were...
A picture window has dimensions of 1.40 m X 2.50 m and is made of glass 5.20 mm thick. On a winter day, the outside temperature is -20.0C, while the inside temperature is a comfortable 19.5C. (a) At...
1) Find any evidence you can on an internet search that car-washes in California need to worry for their future. 2) Many people like BEVMO for purchasing alcohol and drink-related goods. There may be...
How much money could be borrowed at 7% compounded semi-annually if the borrower can make monthly payments of $875 for 25 years? b d $116,782 $24,999 $124,926 $69,770 Next Page Once you click
All of the following are assumptions about consumer behavior except: a. complete preferences b. consistent consumers c. nonsatiation d. relativity
Indifference curves are convex to the origin due to: a. the Law of Diminishing Marginal Utility b. the Law of Diminishing Returns c. relative prices d. the Law of Demand
The relationship between average and marginal is: a . average causes marginal b . marginal causes average c . average chases marginal d . marginal chases average
If average productivity is 20 bu/acre, and marginal productivity is 30 bu/acre then: a . average productivity is increasing b . average productivity is decreasing c . average productivity is constant...
When too much of an input is used, and output decreases, the production process results in: a . constant returns b . increasing returns c . decreasing returns d . negative returns
Calculate the following ratios from the data given below: 1. Receivables turnover 2. Average collection period 3. Gross margin Balance Sheet 12/31/2014 Assets Cash..$575,000 Short-term...
Suppose that a flow network G = (V, E) violates the assumption that the network contains a path s t for all vertices V. Let u be a vertex for which there is no path s u t. Show that there must...
Why is it important to test a theory? Why not simply accept a theory if it sounds right?
What is the intuition behind the geometric growth in interest?
You have $100,000 to donate to your college. You want to endow a perpetual scholarship that makes its first payment in 1 year. If the colleges discount rate is 4%, how large will the annual...

A hedge fund wants to borrow $2,500,000 using a 3 month repurchase agreement. The repo dealer is

Question:

Expert Answer:

1 Amount received after the haircut The haircut is given as 249 To find t... View the full answer

Global Investments

Students also viewed these finance questions