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An Arrow-Debreu security pays $1 at expiry node (6,2). The upstate risk neutral probability is =0.4 and the return over one time-step is R=1.05. What
An Arrow-Debreu security pays $1 at expiry node (6,2). The upstate risk neutral probability is =0.4 and the return over one time-step is R=1.05. What is the premium of this Arrow-Debreu security
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