The Tidewater State Bank has $1000 in total assets (all of which are earning assets), $700 of which will be repriced with in the next 90 days. This bank also has $800 in total liabilities, $400 of which will be repriced within the next 90 days. Currently, the bank is earning 8% on its assets and is paying 5% on its liabilities. If interest rates on both assets and liabilities rise by 2% in the next 90 days, what would this bank's net interest margin be?

A.

4%

B.

4.4%

C.

4.6%

D.

2.4%

E.

6%