Question 2 (15 points) You won a lottery, and you are offered three withdrawal options Option 1: Lumpsum payment of $950,000 today Option 2: $300,000 every year for the future 10 years Option 3: Lumpsum payment of $1,000,000 three years later a. Which option would you prefer if the interest rate is 7% compounded monthly? (Hint: When there are annual cash flows, discount them using EAR based on the monthly compounding) b. How many more/less payments is needed for option 2 so that option 2 will be indifferent from option 3 ? c. What is the amount you need to receive for option 3 so that it is indifferent from option 1 ? d. How much should you receive each year for option 2 so that it is indifferent from option 1