what is the forward interest rate on a 1-vear loan starting two years from now? Assume that the zero coupon vield curve today looks as follows: (2 decimal places) A 1-year zero coupon bond has a yield to maturity of 7.40% A 2-year zero coupon bond has a vield to maturity of 7.50% A 3-year zero coupon bond has a vield to maturity of 7.60% A 4-year zero coupon bond has a vield to maturity of 7.70% A 5-year zero coupon bond has a vield to maturity of 7.80% Question 12 Consider the following option strategy: A. Buy one European call option with one month to expiration and exercise price X1 = $90. This call currently trades at a price C1 = $5 B. Sell one European call option with one month to expiration and exercise price X2 = $60. This call currently trades at a price C2 = $20 In the table below, fill out the payoffs of the components A and B of the strategy. (Remember that "payoffs" do not take into account the initial price of the option.) On the next two lines list the total payoff of the strategy and its net profit. The top row indicates six scenarios for the price of the underlying stock in one month. (Fill in the whole table here, but copy only the last row on the answer sheet.) (2 decimal places) 100 90 80 70 60 50 Stock price: Payoff of A Payoff of B Total payoff Total net profit