Multiple Choice
An FI has financial assets of $800 and equity of $50. If the duration of assets is 1.21 years and the duration of all liabilities is 0.25 years, what is the leverage-adjusted duration gap?
A) 0.9000 years.
B) 0.9600 years.
C) 0.9756 years.
D) 0.8844 years.
E) Cannot be determined.
Correct Answer:
Verified
Correct Answer:
Verified
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