After one year, the economy can be in one of the three scenarios: good, bad, ugly. There are four assets, A, B, C, and D, whose value (cash flow) in the three states will be as follows:

The prices of the assets A, B, and C, are $5, $4.60, and $4.59, respectively. What are the state prices of the three scenarios? What is the risk-free rate? What is the price of asset D?

Ugly Bad Good $0 $5 $10 $5 $10 $0 $7 $4 $0 $5 $5