Consider an economy with 3 states. Two assets are traded in this economy: A= (100,100,100) and B=(105,100,95) a. (6 points) Explain why the market is not complete. Explain with supporting calculations. b. (10 points) Can the market be completed by allowing for trading a forward contract on B with a forward price of 100 ? If not, what value of the forward price in the forward contract can complete the market? Explain carefully with supporting calculations. (Hint: assume a forward price of K in the forward contract). c. (6 points) Explain how the market can be completed by trading a call option on B with a strike price of 100 with supporting calculations. Consider an economy with 3 states. Two assets are traded in this economy: A= (100,100,100) and B=(105,100,95) a. (6 points) Explain why the market is not complete. Explain with supporting calculations. b. (10 points) Can the market be completed by allowing for trading a forward contract on B with a forward price of 100 ? If not, what value of the forward price in the forward contract can complete the market? Explain carefully with supporting calculations. (Hint: assume a forward price of K in the forward contract). c. (6 points) Explain how the market can be completed by trading a call option on B with a strike price of 100 with supporting calculations