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[3 points] You just won a lottery. There are three possible payment options you can choose from. Option A: you receive a lump sum amount
[3 points] You just won a lottery. There are three possible payment options you can choose from. Option A: you receive a lump sum amount of $100,000 today. Option B: you receive 5 payments of $22,000. The rst one today and then one payment in each of the following four years. Option C: you receive 2 payments of $52,000. The rst one today and then one payment next year. The risk-free interest rate is 5%. All payments are tax-free. You are completely risk neutral. What will be your preference ordering? O A. C > B >A O B. B >A > C O C. There is not enough information to answer this question. 0 D. B > C >A O E. A > B > C O F. A > C > B
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