2. Consider the single-period market model M= (B, S1, S2) with three states of nature 12 = {W1, W2, W3}. Let the interest rate be r = 1. Stock prices at time t = 0 are given by Si = 1 and S2 = 2. Random stock prices at time t = 1 are given by the following table | WI W2 W3 Si 1 1 1 S 1 16 Does this market model admit an arbitrage opportunity? Explain your answer. 2. Consider the single-period market model M= (B, S1, S2) with three states of nature 12 = {W1, W2, W3}. Let the interest rate be r = 1. Stock prices at time t = 0 are given by Si = 1 and S2 = 2. Random stock prices at time t = 1 are given by the following table | WI W2 W3 Si 1 1 1 S 1 16 Does this market model admit an arbitrage opportunity? Explain your