This is the same payoff table used in questions 2 and 3. Below is a payoff table that lists four mortgage options:Decision1-year ARM3-year ARM5-year Arm30-year fixedRates Rise$66,645$62,857$55,895$52,276OutcomesRates Stable$43,650$47,698$50,894$52,2764) Which of the following decisions has the best average payoff?CA. 3-year ARMB. 1-year ARMCC. 5-year ARMCD. 30-year FixedRates Fall$38,560$42,726$48,134$52,276

The given payoff table presents four mortgage options: 1-year ARM, 3-year ARM, 5-year ARM, and…

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