d. A put option with exercise price X on an asset pays InaX(X as , 0) in state s, Where a: is the asset payoff in state S. Show how asset C together with the purchase or sale of put options can be used to synthetically construct the ArrowDebreu securities. Explain why the same cannot be done if we replace asset C with asset B. ADZ: P1 is AD2;AD1: P22Pl is AD1;AD3: 0.5*C-0.5*P2+Pl is AD3. Can't do it with B as payoffs in states 2 and 3 are the same, so no way to use a call to give you different payoffs in those states