Consider an investment world with only two states Strong Economy (despite Covid) with a probability of 60% and Weak Economy (because of Covid) with 40% probability. There are two benchmark securities in this world-risk-free security and market index. Except the cash flows of the two benchmark securities at time /1, the rest of the setup is exactly the same as in the write-up of the async videos. The table below shows the no-arbitrage prices of these two securities: Cash Flow in One Year Security Market Price Today at =0 Weak Economy Strong Economy Risk free Security 2100 2105 1105 Market Index 2100 275 2150 I. What is the price of an equity security that payoffs of 20 in a weak economy and $75 in a strong economy? 2 What is the price of an insurance security that payoffs of (75 in a weak economy and