Which of the following statements best describes the relation between interest rates offered on comparable fixed-rate and adjustable rate mortgage (ARM) loans?

Multiple Choice

a. ARM interest rates are typically greater than those on fixed-rate mortgages since interest rate risk is borne by both borrower and lender in an ARM.

b. ARM interest rates are typically less than those on fixed-rate mortgages since interest rate risk is borne by both borrower and lender in an ARM.

c. ARM interest rates are typically greater than those on fixed-rate mortgages since interest rate risk is borne solely by the lender in an ARM.

d. ARM interest rates are typically less than those on fixed-rate mortgages since interest rate risk is borne solely by the borrower in an ARM.