8.3 Three-part question: a. Describe intuitively the idea of an Arrow-Debreu security. Arrow-Debreu securities are not observed in real markets. Is the concept nevertheless use? What is the link between Arrow-Debreu securities and options? b. You observe the following assets with the corresponding state-dependent payoffs: Securities A B C 3 T 8 States 1 2 9 7 16 25 Is this market complete? c. Is the following market structure complete? Assets A B C 1 1 5 12 2 3 6 14 States 3 12 7 16 4 15 B 20 If the market is not complete, introduce a derivative security to complete it. Construct an Arrow-Debreu security by introducing calls or puts on these assets. Can you reproduce the same structure by using only puts