An FI has a leverage-adjusted duration gap of 1.21 years, $60 million in assets, 7% equity to assets ratio, and market rates are 8%.What is the impact on the dealer's market value of equity per $100 of assets if the relative change in all interest rates is an increase of 0.5% [i.e.$\Delta$R/(1+R) = 0.5%]?
A)+$336 111
B)-$0.605
C)-$336 111
D)+$0.605

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The Answer of An FI has a leverage-adjusted duration gap of 1.21 years, $60 million in assets, 7% equity to assets ratio, and market rates are 8%.What is the impact on the dealer's market value of equity per $100 of assets if the relative change in all interest rates is an increase of 0.5% [i.e.$\Delta$R/(1+R) = 0.5%]?
A)+$336 111
B)-$0.605
C)-$336 111
D)+$0.605

An FI Has a Leverage-Adjusted Duration Gap of 1 Δ\DeltaΔ R/(1+R) = 0

An FI Has a Leverage-Adjusted Duration Gap of 1 $\Delta$ R/(1+R) = 0