Assume the Dollar Market Value of an FI's Position Is

question 39

Multiple Choice

Assume the dollar market value of an FI's position is $200 000 with a modified duration of 4 years. The potential adverse move in the yield is 16.5 basis points. What is the VAR of the position if the FI is required to hold the position for 6 days (round to two decimals) ?

• A) $1 320.00
• B) $3 233.33
• C) $330.00
• D) $200 000.00

---

Definitions:

Visual Cortex

The part of the brain responsible for processing visual information.

Optic Nerve

The nerve that transmits visual information from the retina to the brain.

Optic Chiasm

The part of the brain where the optic nerves partially cross, playing a crucial role in the visual system by combining visual information from both eyes.

Light Adaptation

The process by which the eye adjusts to bright light conditions after being in darker settings.