Use the information given below to answer the following question$($s$).$

Below is a payoff table that lists three mortgage options:

Outcome

Decision

Rates Rise

Rates Stable

Rates Fall

$2-$year ARM

$$66,645$

$$43,650$

$$38,560$

$5-$year ARM

$$62,857$

$$47,698$

$$42,726$

$25-$year fixed

$$52,276$

$$52,276$

$$52,276$

What is the maximum opportunity loss incurred for the $5-$year ARM?

Use the information given below to answer the following question$($s$).$

Below is a payoff table that lists three mortgage options:

Outcome

Decision

Rates Rise

Rates Stable

Rates Fall

$2-$year ARM

$$66,645$

$$43,650$

$$38,560$

$5-$year ARM

$$62,857$

$$47,698$

$$42,726$

$25-$year fixed

$$52,276$

$$52,276$

$$52,276$

What is the maximum opportunity loss incurred for the $5-$year ARM?

$ $8,626$

$ $14,369$

$ $13,716$

$ $10,581$