Question: (a) The market includes two assets. Asset A has a current price of $85. One year from now, it will return $95 if the market

(a) The market includes two assets. Asset A has a current price of $85. One year from now, it will return $95 if the market is up and $70 if the market is down. Asset B sells for $21. One year from now it will return $24 if the market is up and $19 if the market is down. Develop an arbitrage strategy involving these two assets. [6 marks]

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