Please explain as much as you can.

Textbook: Financial Mathematics A comprehensive Treatment by Giuseppe Campolieti

page 202, Exercise 5.14

Exercise 5.14. Determine if the following Arrow-Debreu models with M = 4 and N = 3 are arbitrage-free. If yes, find a state-price vector (just one). If not, find an arbitrage portfolio (a) So = ] 2 , [10] D= [1 12 [o 1 1 1] 3 0 0; 0 0 10 (b) So = 2, D= 12 3 0 0 [10] [0 0 0 20] - zero-coupon Exe hod securities. Exercise 5.14. Determine if the following Arrow-Debreu models with M = 4 and N = 3 are arbitrage-free. If yes, find a state-price vector (just one). If not, find an arbitrage portfolio (a) So = ] 2 , [10] D= [1 12 [o 1 1 1] 3 0 0; 0 0 10 (b) So = 2, D= 12 3 0 0 [10] [0 0 0 20] - zero-coupon Exe hod securities