Multiple Choice
A bank has an average asset duration of 1.15 years and an average liability duration of 2.70 years.This bank has $250 million in total assets and $225 million in total liabilities.This bank's leverage-adjusted duration gap is a:
A) negative gap of 1.55 years.
B) positive gap of 1.28 years.
C) negative gap of 3.85 years.
D) negative gap of 1.28 years.
E) None of the options is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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