Year (n) Zero-rate for n year investment (%) Forward rate for nth-year (% per annum) 3.0 5.0 4.0 4.6 5.8 4 5.0 6.2 5.5 6.5 The. CA SHU) Financial Deriativ Exercise Consider a one-period model with only two possible end-of-period states. Three assets are traded in an arbitrage-free market. Asset 1 is a risk-free asset with a price of 1 and an end-of-period payoff of R. the risk-free gross rate of return, in either state. Asset 2 has a price of S and offers a payoff of us in state 1 (good state) and dS in state 2 (bad state), where u>d. 1. Show that if the inequality d b b. if ad. 1. Show that if the inequality d b b. if a