That question is CRAZY. Actually I'm wrong, the answer is crazy.
Five letter words with the second and fourth letter O are:boronbosomcocoacoloncolordonorhonormoronmotorrobotrotor
nerve nerue
Delta
Iraqi
redye
human
Taken
"Grade" is one word.
Some five letter words with second letter O and fourth letter E are:bogeybowelbowercometcovencoverdowelhotellosermodelmowernoseynovelpowerrover
banjo
draindreaddream
procreation