Question: Question 4 This is the same payoff table used in questions 2 and 3. Below is a payoff table that lists four mortgage options: Decision

Question 4 This is the same payoff table used in

Question 4 This is the same payoff table used in questions 2 and 3. Below is a payoff table that lists four mortgage options: Decision | 1-year ARM 3-year ARM 5-year Arm 30-year fixed Rates Rise $66,645 $62,857 $55,895 $52,276 Outcomes Rates Stable $43,650 $47,698 $50,894 $52,276 Rates Fall $38,560 $42,726 $48,134 $52,276 4) Which of the following decisions has the best average payoff? O A. 5-year ARM O B. 1-year ARM OC. 30-year Fixed O D. 3-year ARM

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