How the dealer can use the repo market for financing

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An option dealer needs to finance the purchase of a security and holds an inventory of U.S. Treasury bills. Explain how the dealer can use the repo market for financing the security purchase?

All derivatives are based on the random performance of something. Identify and discuss this "something.".

Reference no: EM131324479

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How the dealer can use the repo market for financing : An option dealer needs to finance the purchase of a security and holds an inventory of U.S. Treasury bills. Explain how the dealer can use the repo market for financing the security purchase?

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