正逆回购

问题如下：

Pasquini Investments (Pasquini)is a private brokerage looking for 30-day financing of $25 million of itsaccounts payable but is unsure whether the appropriate investment is a termrepurchase agreement (repo) or a term reverse repo agreement. Pasquini iswilling to post AAA-rated government bonds as collateral. The bonds have a facevalue of $27 million and a market value of $25 million. The firm is quoted arate of 0.5% for the transaction. Which of the following choices mostaccurately reflects the contract type and the contract price needed byPasquini?

选项：

A.

Repo $27,011,250

B.

Reverse Repo $25,010,417

C.

Repo $25,010,417

D.

Reverse Repo $27,011,250

解释：

Given that Pasquiniis a borrower in the repo market, the transaction is a repo from theperspective of the firm (but a reverse repo from the perspective of thelender). The contract price is calculated as follows: $25,000,000 × (1 + 0.5% ×30/360) = $25,010,417