Question: Can you answer the problem I'm posting it for the third time Suppose there are three states of nature and three traded assets with the

Can you answer the problem I'm posting it for the third time

Can you answer the problem I'm posting it for the

Suppose there are three states of nature and three traded assets with the following payoffs. Each column represents an asset and each row represents a state of nature. 0 Payoff = {2 1 3 3 2 2 2 Price = 31.5 (1.4) - Find out the risk free interest rate. Hint: First figure out the replication portfolio for risk free asset. II Given the current information please find out the price of the following three assets. 0 Payoff = 30 1 100 0 0 1 III Based on question II, what is the price of the following asset? Payoff = mes lv Is the market in equilibrium? Are there any arbitrage opportunities? Suppose there are three states of nature and three traded assets with the following payoffs. Each column represents an asset and each row represents a state of nature. 0 Payoff = {2 1 3 3 2 2 2 Price = 31.5 (1.4) - Find out the risk free interest rate. Hint: First figure out the replication portfolio for risk free asset. II Given the current information please find out the price of the following three assets. 0 Payoff = 30 1 100 0 0 1 III Based on question II, what is the price of the following asset? Payoff = mes lv Is the market in equilibrium? Are there any arbitrage opportunities

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