Immunizing the balance sheet to protect equity holders from the effects of interest rate risk occurs when

Select one:

a.

The leverage ratio is zero.

b.

The leverage-adjusted duration gap is one.

c.

The modified duration gap of the balance sheet is greater than one.

d.

the effect of a change in the level of interest rates on the value of the assets of the financial institution (FI) is precisely offset by the effect of the exact change in interest rates on the liabilities of the FI.

e.

The modified duration is equal to the dollar duration.