ALL PARTS PLEASE

2. Calculate the following: (a) (2 pt) For a 3 by 2 market, M=321111, find an intial price S0 of the risky asset for which this market has a riak-neutral martingale probability Q. (b) (1 pt) Calculate Q in (a). (c) (1pt) In a complete 2 by 2 market M=[abcd],So=(2a+b2c+d) where a,b,c,d are positive, calculate the hedge X for contingency claim V= (ef) (d) (1pt) Calculate the initial price of the claim V=(ef) using the hedge in (c). (e) (1 pt) Using c=d=1, and a>b>0, in (c), price a European put on the underlying risky asset with strike K=S0. 2. Calculate the following: (a) (2 pt) For a 3 by 2 market, M=321111, find an intial price S0 of the risky asset for which this market has a riak-neutral martingale probability Q. (b) (1 pt) Calculate Q in (a). (c) (1pt) In a complete 2 by 2 market M=[abcd],So=(2a+b2c+d) where a,b,c,d are positive, calculate the hedge X for contingency claim V= (ef) (d) (1pt) Calculate the initial price of the claim V=(ef) using the hedge in (c). (e) (1 pt) Using c=d=1, and a>b>0, in (c), price a European put on the underlying risky asset with strike K=S0