Consider the following balance sheet positions for a financial institution:

Rate-sensitive assets = $250 million; Rate-sensitive liabilities = $120 million.

Rate-sensitive assets = $120 million; Rate-sensitive liabilities = $180 million.

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a) Calculate the repricing gap and the impact on net interest income of a 1 percent increase in interest rates for each position.

b) Calculate the repricing gap and the impact on net interest income of a 1 percent decrease in interest rates for each position.

c) Explain the type of risk this FI is exposed to in each position.

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please make sure the answer is correct 100%