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

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.