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雷达卡
An investor wants to invest $1000 cash for a period of 5 days. He has two alternative choices:
a.either invest in a T-bill with a remaining maturity of 10 days
b.or roll over his cash using the overnight repo rate
1.knowing that the T-bill yields at 1.7% at the beginning of the investment period and
1.64% at the end(on a discount basis), and that the overnight repo rate has the following values over the investment period:
day 1: 1.8%
day 2: 1.74%
day 3: 1.7%
day 4: 1.65%
day 5: 1.67%
which of the two strageties is more profitable?
2. which is the interest -rate risj un each strategy?
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