(c) Consider a market with just 2 assets and 2 states defined by D=(2313),p1=(0.50.5),p2=(12) Here D is the pay-off matrix and p1 and p2 are 2 column vectors of initial prices; all prices are in i. Are the markets composed of {D,p1} and {D,p2} arbitrage-free? If not, find an arbitrage portfolio. (4 marks) ii. Find the initial prices of a call and a put option with the same strike price of 1.5 on the first asset in the market composed of {D,p2}. Does put-call parity hold? (6 marks) (c) Consider a market with just 2 assets and 2 states defined by D=(2313),p1=(0.50.5),p2=(12) Here D is the pay-off matrix and p1 and p2 are 2 column vectors of initial prices; all prices are in i. Are the markets composed of {D,p1} and {D,p2} arbitrage-free? If not, find an arbitrage portfolio. (4 marks) ii. Find the initial prices of a call and a put option with the same strike price of 1.5 on the first asset in the market composed of {D,p2}. Does put-call parity hold? (6 marks)