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What is the leverage-adjusted duration GAP (DGAP) of an institution with duration of asset s (DA= 1.3 years), duration of liabilities (DL = 4.05 years).
What is the leverage-adjusted duration GAP (DGAP) of an institution with duration of asset s (DA= 1.3 years), duration of liabilities (DL = 4.05 years). The institution has assets of $5,000 and equity of $800.
A. +2.75 years
B. -2.10 years
C. +2.10 years
D. -4.05 years
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