1. A bank has an average asset duration of 5 years and an average liability duration of 9 years. This bank has total assets of $1,000 million and total liabilities of $850 million. Currently, market interest rates are 5 percent. What will be this bank's leverage-adjusted duration gap?
A. -4 years
B. 4 years
C. 2.65 years
D. -2.65 years
E. 3.65 years
2. An investor purchases one September T-bond futures contract at 115-110. The settlement price for the contract on next day is 117-225. What is the marked-to-market gain/loss for the investor?
A. $2,359
B. -$2,359
C. $236
D. -$2,115
E. $2,115