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A single-period security market consisting of a bank account with interest rate = 0.1 and two stocks. Let the sample space be given by =
A single-period security market consisting of a bank account with interest rate = 0.1 and two stocks. Let the sample space be given by = {1, 2, 3} and let the price of the securities be given by S1(0) = 1, S2(0) = 2, S1(1, 1) = 2, S1(1, 2) = 2, S1(1, 3) = 2, S2(1, 1) = 4, S2(1, 2) = 5, S2(1, 3) = 3.
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