A an Average Asset Duration of 4

Multiple Choice

A an average asset duration of 4.7 years and an average liability duration of 3.3 years.This bank has $750 million in total assets and $500 million in total liabilities.This bank's leverage-adjusted duration gap is a:

A) positive gap of 8.0 years.
B) negative gap of 2.5 years.
C) positive gap of 1.4 years.
D) positive gap of 2.5 years.
E) None of the options is correct.