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The Following Information Is from First Yaupon Savings Association [Reference: 8-99]
-What Is the Repricing Gap Over the 1-Year

Question 88

Multiple Choice

The following information is from First Yaupon Savings Association.  Assets  Par Amount  Rate  Liabilities  Par Amount  Rate  2-year commercial loans  $600 million 10% 1-year CDs  $900 million 7% 1-year Treasury bills  $400 million  Net Worth  $100 million \begin{array} { | l | l | l | l | l | l | } \hline \text { Assets } & \text { Par Amount } & \text { Rate } & \text { Liabilities } & \text { Par Amount } & \text { Rate } \\\hline \text { 2-year commercial loans } & \text { \$600 million } & 10 \% & \text { 1-year CDs } & \text { \$900 million } & 7 \% \\\hline \text { 1-year Treasury bills } & \text { \$400 million } & & \text { Net Worth } & \text { \$100 million } & \\\hline\end{array} [Reference: 8-99]
-What is the repricing gap over the 1-year maturity bucket?


A) +$100 million.
B) -$500 million.
C) -$100 million.
D) +$500 million.
E) -$900 million. [Refer to: 8-99]

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