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Currently the short term (1 to 12 month) borrowing rate is 2.5% per year and the lending rate over the same period is 0.5% per
Currently the short term (1 to 12 month) borrowing rate is 2.5% per year and the lending rate over the same period is 0.5% per year. Which of the following implied repo rate per year for a six month futures contract will allow you an arbitrage opportunity? Assume no other transaction cost.
0.15%
0.25%
3.25%
2.75%
All of these
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