Due mande FINA4600 -GAP management homework 1. DDR National Bank uses dollar GAP management. The tollowing is the bank's Rate Sembve Assets (7 4000 a. What is the bank's doliar GAP and its GAP Ratio? b Calculate the bank's pretax profts. C. Recalculate pretax proft, assuming a drop r'terest tates of 1% (100 basis points) d. Now assume DDR anticipates the fall in interest rates and neplaces $300 of RSA with an equal amount of FRA (Assume eovaien pelds as determined in part c) Recalculatothe dolar GAP and ee pretax prets