as examii further in Chapter 16. To see these relationships, suppose that we can describe the world using two states and that two stocks are available, stock A and stock B. We assume the stocks' future prices have the following distributions: State Future Prices Stock A Future Prices Stock B 1 2 $10 $ 8 $7 $9 as examii further in Chapter 16. To see these relationships, suppose that we can describe the world using two states and that two stocks are available, stock A and stock B. We assume the stocks' future prices have the following distributions: State Future Prices Stock A Future Prices Stock B 1 2 $10 $ 8 $7 $9