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Which is true in a repurchase agreement

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Question 1: In a repurchase (or repo) agreement, which of the following is true?

Option 1: A borrower sells a security for cash and agrees to repurchase it from the lender at specified date and price

Option 2: A lender sells a security for cash and agrees to repurchase it from the borrower at specified date and price

Option 3: A borrower buys a security and agrees to sell it to the lender at specified date and price

Option 4: A borrower receives an uncollateralized loan and agrees to pay it to the lender at specified date and price

Reference no: EM132566242

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