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Question 1 1 pts When the zero curve is upward sloping (i.e., the long-term zero rates are higher than short-term zero rates), which one of
Question 1 1 pts When the zero curve is upward sloping (i.e., the long-term zero rates are higher than short-term zero rates), which one of the following is true? O The two-year zero rate is lower than the forward rate for the second year. O The one-year zero rate is higher than the two-year zero rate. O The two-year zero rate is higher than the forward rate for the second year. The one-year zero rate is higher than the forward rate for the second year. Question 2 1 pts An investor shorts 100 shares of a stock when the share price is $50 and closes out the position six months later when the share price is $45. The stock pays a dividend of $3.5 per share during the six months. Assume that the risk free interest rate is zero. How much does the investor gain? Answer with two decimal place accuracy without the dollar sign 150.0000
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