Question Determine which of the following positions has the same cash flows as a short stock position. Possible Answers A Long forward and long zero-coupon bond B Long forward and short forward c Long forward and short zero-coupon bond D Long zero-coupon bond and short forward E Short forward and short zero-coupon bond Question The dividend yield on a stock and the interest rate used to discount the stock's cash flows are both continuously compounded. The dividend yield is less than the interest rate, but both are positive. The following shows four methods to buy the stock and the total payment needed for each method. The payment amounts are as of the time of payment and have not been discounted to the present date. Method: Outright purchase. Total payment: A Method: Fully leveraged purchase. Total payment: B Method: Prepaid forward contract. Total payment: C Method: Forward contract. Total payment: D Determine which of the following is the correct ranking, from smallest to largest, for the amount of payment needed to acquire the stock. Possible Answers AC