-Calculate the Leverage-Adjusted Duration Gap to Four Decimal Places and State

question 9

Multiple Choice

-Calculate the leverage-adjusted duration gap to four decimal places and state the FI's interest rate risk exposure of this institution.

• A)+1.0308 years;exposed to interest rate increases.
• B)-0.3232 years;exposed to interest rate increases.
• C)+0.8666 years;exposed to interest rate increases.
• D)+0.4875 years;exposed to interest rate increases.