A financial investor has an investment portfolio. A bond in her investment portfolio will mature next month and provide her $25,000 to reinvest. The choices for reinvestment have been narrowed to the following two options:

• Option 1: Reinvest in a foreign bond that will mature in one year. This transaction will entail a brokerage fee of $150. For simplicity, assume that the bond will provide interest over the one‐year period of $2,450, $2,000, or $1,675 and that the probabilities of these occurrences are assessed to be 0.25, 0.45, and 0.30, respectively.
• Option 2: Reinvest in a $25,000 certificate with a savings and loan association. Assume that this certificate has an effective annual rate of 7.5%. Which form of reinvestment should the investor choose in order to maximize her expected financial gain?