1) Consider the securities model with one risky security and one risk-free security whose discounted values at t=0 and t=1 are given by: S(0)=(1,3),S(1,)=111432 Now there is a claims Y with the payoff at time t=1 : Y(1,)=543 Work out the price of the claim Y at t=0, e.g., Y(0).(10 marks) 2) Suppose that the stock price and bank account follow two stochastic processes under a probability measure: StdSt=rdt+dWtBtdBt=rdt, where dWt presents a Brownian motion process. Now define a new random variable of Yt=BtSt. Apply Ito's lemma to derive the stochastic process for dYt.(15 marks)