Answer: 2.2%.

The correct answer is **C** (2.2%). Since all three CDs share the same maturity and default risk, the opportunity cost of investing in CD 1 (2.2%) is the foregone return from the highest-yielding alternative, CD 3 (4.4%). The difference between these rates (4.4% - 2.2% = 2.2%) represents the opportunity cost. Options A and B are incorrect because they either ignore the foregone return or miscalculate it by averaging the returns, respectively.

Author: LeetQuiz Editorial Team