The most common means of financing a cash-and-carry arbitrage is a repurchase agreement.

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A repurchase agreement, also known as a repo, is a common means of financing cash-and-carry arbitrage. In a repo, an investor sells securities to a counterparty with an agreement to repurchase them at a later date at a higher price, effectively borrowing money using the securities as collateral. This allows investors to finance the cash purchase of an asset in a cash-and-carry arbitrage strategy.

The Most Common Means of Financing a Cash-And-Carry Arbitrage Is