8-82 What is the repricing gap if a 1-year maturity gap is used if runoffs are also considered?
A)-22 million.
B)+$22 million.
C)+$53 million.
D)-$40 million.
E)-$70 million.

Question

Quizplus · Accepted Answer

The repricing gap is the difference between the present value of the liabilities at the new rates and the present value of the liabilities at the old rates. In this case, the present value of the liabilities at the new rates is $105 million and the present value of the liabilities at the old rates is $52 million. Therefore, the repricing gap is $105 million - $52 million = $53 million.

8-82 What Is the Repricing Gap If a 1-Year Maturity