Question: 1 0 2 points Can an Fl immunize itself against interest rate risk exposure even though its maturity gap is not zero? No , because

10
2 points
Can an Fl immunize itself against interest rate risk exposure even though its maturity gap is not zero?
No, because the maturity model does not consider the timing of cash flows.
No, because with a maturity gap of zero the change in the market value of assets exactly offsets the change in the market value of liabilities.
Yes, as long as the leverage-adjusted duration gap is zero.
Yes, because with a maturity gap of zero the change in the market value of assets exactly offsets the change in the market value of liabilities.
10 2 points Can an Fl immunize itself against interest rate

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