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Use the Information Given Below to Answer the Following Question(s)

question 32

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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\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?

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