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(1) Show how you could make arbitrage profit and how much? (2) Explain the way how the market attains equilibrium Current Price See following table

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(1) Show how you could make arbitrage profit and how much? (2) Explain the way how the market attains equilibrium

Current Price See following table and answer the questions. Securities Payoffs in State H L R1 $50 0 R2 0 $50 B $50 $50 $20 $20 $25 Current Price See following table and answer the questions. Securities Payoffs in State H L R1 $50 0 R2 0 $50 B $50 $50 $20 $20 $25

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