Consider the following balance sheet positions for a financial institution:

• Rate-sensitive assets = $200 million Rate-sensitive liabilities = $ 100 million

Rate-sensitive assets = $100 million Rate-sensitive liabilities = $ 150 million

Rate-sensitive assets = $150 million Rate-sensitive liabilities = $ 140 million

1. Calculate the repricing gap and the impact on net interest income of a 1 percent increase in interest rates for each position.
2. Calculate the impact on net interest income of each of the above situations, assuming a 1 percent decrease in interest rates.
3. What conclusion can you draw about the repricing model from these results?