Consider a capital market with two securities. The payoffs of these securities in the two equally likely states of the world are given in the table below. Price P = 2 PR = 3 Security A B Payoff State 1 4 3 State 2 2 4 a) Discuss the concepts of complete capital markets, pure (Arrow-Debreu) securities, and pure factor portfolios. Establish whether the capital market in this case is complete and determine the prices of the pure securities by arbitrage. (25 marks) b) Using the arbitrage principle, determine the prices of a put option on stock A with an exercise price of $4 and a call option on stock B with an exercise price of $2. (20 marks)