Create a numerical example in a three security/two state model and illustrate the proof of the Fundamental theorem by that example. For example, define three securities as having initial prices of Si(0) =1, S2(0) = 3,, etc., and final prices of Siwi) = 0, Si(w2) = 3, etc., for N = {W1,w2}. Create two examples - one the does not allow arbitrage, and one that does allow arbitrage. Demonstrate that L space must be a hyperplane in R3 in case of no arbitrage, but not in case when arbitrage is allowed. Problem Create a numerical example in a two security three state model and illustrate the proof of the Fundamental theorem by that example. Show that in this case the state-price vector is not unique by creating two different state price vectors