Response to the following problem:
Calculate the repricing gap and impact on net interest income of a 1 percent increase in interest rates for the following positions:
a. Rate-sensitive assets= $100 million; Rate-sensitive liabilities= $50 million.
b. Rate-sensitive assets= $50 million; Rate-sensitive liabilities =$150 million.
c. Rate-sensitive assets =$75 million; Rate-sensitive liabilities =$70 million.
d. What conclusions can you draw about the repricing gap model from the above results?