4. Below is a payoff and price matrix for three securities A, B, and C on rice matrix for three securities A, B and C on the market. Assume zero risk Tree rate and ignore dividend payments. There are two possible states (states 1 and 2) that can your investment period, and the corresponding payoff from each security under cach state wo possible states (states 1 and 2) that can be realized after ng payoff from each security under each state is given. (15) Security A Security B Security C Price Today (5) Payoff at State 1 (S) Payoff at State 2 (S) 9 18 a. How can you use securities A and B to replicate the payoff of C? (5) Is there any arbitrage opportunity you can find from the above replication? If so, describe the method. (5) c. Assume the maximal worth of security you can short sell/borrow is $15M. Show how you get profit from this arbitrage opportunity