An interest rate floor: A) obligates both parties to trade at a preset price at a future date B) gives one party the right to buy an underlying good in the future at a preset price C) gives one party the right to sell an underlying good in the future at a preset price D) sets the minimum interest rate paid/received E) none of the above Earnings sensitivity analysis involves: A) always using parallel yield curve movements B) ignoring the time at which rates on assets and liabilities change C) forecasting the exercise of embedded options under different economic settings D) requiring that rates on assets and liabilities move by the same amounts E) all of the above F) none of the above If the Duration GAP for a bank is positive and interest rates rise, the value of the bank's equity would be expected to: A) Would fall because the value of assets would fall more than the value of liabilities B) Would fall because the value of assets would rise less than the value of liabilities C) Would rise because the value of assets would rise more than the value of liabilities D) Would rise because the value of assets would fall less than the value of liabilities