(1) [8 Points] Consider a one period market model composed of a bank account with constant interest rate r - 2 and a stock whose price at time 0 is So > 0 Assume that the stock price S1 at time one is given by S1+ N, where V 1 is a Poisson distributed random variable with parameter one. (a) [4 Points] Determine for what values of So the market is free of arbi- trage. (b) [4 Points] When this market is free of arbitrage, is it complete? (1) [8 Points] Consider a one period market model composed of a bank account with constant interest rate r - 2 and a stock whose price at time 0 is So > 0 Assume that the stock price S1 at time one is given by S1+ N, where V 1 is a Poisson distributed random variable with parameter one. (a) [4 Points] Determine for what values of So the market is free of arbi- trage. (b) [4 Points] When this market is free of arbitrage, is it complete