A Position Is Said to Be 'Immunised' When a Change

question 38

True/False

A position is said to be 'immunised' when a change in interest rates will have a zero- dollar effect on assets and a zero- dollar effect on liabilities.

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Definitions:

Empirical Evidence

refers to information or data obtained through observation or experimentation rather than theory or opinion.

Significantly Underpriced

A term used to describe assets or securities that are available for purchase at a price well below their intrinsic value.

Firm Commitment Offers

A type of underwriting agreement where the underwriter buys the entire issue of securities from the issuer and sells them to investors at a profit.

Best Efforts

An agreement stipulating that an underwriter will do their best to sell as much of an offering as possible, without guaranteeing the entire sale.