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3. Consider a single period model given by 120 1 5 1 1 3 0 S(0)= 2,6,6 ,S(1)= 1 0 1 . 000 Is this

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3. Consider a single period model given by

120 1 5 1 1 3 0

S(0)= 2,6,6 ,S(1)= 1 0 1 .

000 Is this model arbitrage free? If Yes, find a state price vector; and if the answer is No, find an arbitrage trading

strategy .

Please answer ASAP with full solutions and explanations!!!

3. Consider a single period model given by S(0)=(21,65,61),S(1)=111023000010 Is this model arbitrage free? If "Yes", find a state price vector; and if the answer is "No", find an arbitrage trading strategy 3. Consider a single period model given by S(0)=(21,65,61),S(1)=111023000010 Is this model arbitrage free? If "Yes", find a state price vector; and if the answer is "No", find an arbitrage trading strategy

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