Assume a finite state economy with three assets whose payoff matrix is given by

 

[30 20 X = 20 15 10 0 a. Is the third asset redundant and why? b. Is the market complete? c. Suppose the prices of the three assets are $25, $17, and $8. Does the Law of One Price hold in this market? If not, what's your arbitrage strategy? d. What should be the price of a new asset that provides payoffs of $10 and $15 in each state, respectively?