Problem. 02: Consider the following balance sheet positions for a financial institution: - Rate-sensitive assets =$200 million. Rate-sensitive liabilities =$100 million - Rate-sensitive assets =$100 million. Rate-sensitive liabilities =$150 million - Rate-sensitive assets =$150 million. Rate-sensitive liabilities =$140 million a. Calculate the repricing gap and the impact on net interest income of a 1 per cent increase in interest rates for each position. b. Calculate the impact on net interest income on each of the above situations assuming a 1 per cent decrease in interest rates. c. What conclusion can you draw about the repricing model from these results? Solution