In comparing adjustable rate mortgage (ARM) with fixed rate mortgage (FRM),

	1.	Both the borrower and the lender bear more interest risk with the ARM than with the FRM.
	2.	Both the borrower and the lender bear less interest risk with the ARM than with the FRM
	3.	The FRM borrower bears more risk with the ARM than with the FRM.
	4.	The ARM borrower bears less risk with the ARM than with the FRM.