R epo rates Repurchase agreement is an agreement Where a financial institution that owns securities agrees to sell them today for X and buy them bank in the future for a slightly higher price, Y e The financial institution obtains a loan e The rate of interest is calculated from the difference between x and y and is known as the repo rate Options, Futures, and other Derivatives 8th Edition Copyright O John C Hull 2012 5Repo Rates Repurchase agreement is an agreement where a financial institution that owns securities agrees to sell them today for X and buy them bank in the future for a slightly higher price, Y The financial institution obtains a loan. The rate of interest is calculated from the difference between X and Y and is known as the repo rate Options, Futures, and Other Derivatives 8th Edition, Copyright © John C. Hull 2012 5