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Question 10 ( 3 points) A borrower is debating between a 15yr,20yr and 30yr mortgage with the same rate that would be the same size. Which will have the largest monthly payment? Select One A) 15yr B) 20yr C) 30yr D) Cannot be determined from the information given Question 11 ( 3 points) What would you pay more for, an option that expiries in one day (A) or the same option that expires in one year (B)? Select one A) Option A B) Option B C) They are the same D) Cannot be determined from this information. Question 12 (3 points) Which of the following MBS bonds would have the best convexity (least negative convexity)? A) All loans greater then 300k loan size B) All loans that are 100\% TPO C) All loans that are less than 100k loan size D) All loans are originated in Iowa Question 13 ( 3 points) Which of the following are considered prepayments? X. Refinancing = 2. Adding another floor to the house 3. Sale of a house X. Default