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Autor: chin sam • December 6, 2017 • Case Study • 806 Words (4 Pages) • 463 Views
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BBUS BACHELOR OF BUSINESS
FINANCE
FIN4243
Global Banking and Finance
INDIVIDUAL ASSIGNMENT
NAME : CHIN SIM WOO
ID NUMBER : I14006419
SECTION : 5FN1
Lecturer: MS.REBECCA Yew Ming Yuan
(A)
Assets | ||||
Variable-rate loans > 30days | 33 | |||
Fixed rate loans < 30days | 8 | |||
Variable-rate loans < 30days | 16 | |||
TOTAL ASSETS | 57 | |||
Liabilities | ||||
demand deposits | 15 | |||
7-day certificates of deposit | 8 | |||
TOTAL LIABILITIES | 23 |
Re-pricing gap = RSA-RSL
= 57 billion - 23 billion
= $34 billion
B) change in probability = Re-pricing gap x change in rates x period
= $34 billion x (-50% x 1%) x 30/365
= -$13,392,602.74
What is Asymmetric Information?
Information asymmetry is a party to the transaction with the other compared to the case more or higher information. This often happens in the transaction, the seller know more buyer, although torsion can occur. Potentially, this could be a hazardous situation because the other party can take advantage of the lack of knowledge. As technology advances, asymmetric information is already on the decline, as more and more people are able to easily access all types of information.
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