First Duration, a Securities Dealer, Has a Leverage-Adjusted Duration Gap

Multiple Choice

First Duration, a securities dealer, has a leverage-adjusted duration gap of 1.21 years, $60 million in assets, 7 percent equity to assets ratio, and market rates are 8 percent. What is the impact on the dealer's market value of equity per $100 of assets if the change in all interest rates is an increase of 0.5 percent [i.e., ΔR = 0.5 percent]

A) +$336,111.
B) -$0.605.
C) -$336,111.
D) +$0.605.
E) -$363,000.