Use the Information Given Below to Answer the Following Questions)

question 2

Multiple Choice

Use the information given below to answer the following questions) . Below is a payoff table that lists three mortgage options: $$\begin{array} { | l | l | l | l | } \hline & { \text { Outcome } } \\\hline \text { Decision } & \text { Rates Rise } & \text { Rates Stable } & \text { Rates Fall } \\\hline \text { 2-year ARM } & \$ 66,645 & \$ 43,650 & \$ 38,560 \\\hline \text { 5-year ARM } & \$ 62,857 & \$ 47,698 & \$ 42,726 \\\hline \text { 25-year fixed } & \$ 52,276 & \$ 52,276 & \$ 52,276 \\\hline\end{array}$$
-What is the maximum opportunity loss incurred for the 2-year ARM?

• A) $ 8,626
• B) $ 13,716
• C) $ 14,369
• D) $ 10,581

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Definitions:

Sales Presentation

A strategic dialogue or demonstration by a salesperson to persuade a potential buyer about the benefits and features of a product or service.

Stalling Objection

A type of objection in sales where the prospect delays making a purchase decision, usually requesting more information or time to think.

Vending Machines

Automated machines that dispense goods such as snacks, beverages, or even electronics, upon payment.

Visual Aids

Tools and materials, such as charts, diagrams, or videos, used to enhance understanding or retention of information.