(Could use help with a and b.)

Consider a single-period model consisting of a risk-free asset with prices A(0) = 1 and A(1) = 1 + r and two stocks with prices S_1(0) = 21, S_2(0) = 24 S_1(1) = {31 in scenario omega_1 19 in scenario omega_2 S_2(1) = {40 in scenario omega_1 16 in scenario omega_2 (a) Find r such that the model is arbitrage free and determine the risk-neutral probability/probabilities. (b) Assume r is such that there is no arbitrage. Find the arbitrage-free prices of i. a call option on the second stock with strike price 30. ii. a payoff max {S_1(1), S_2(1) at time 1. (c) For r = 0, construct an arbitrage opportunity. (d) Assume r = 0. Is there an arbitrage opportunity if borrowing money from the risk-free asset is not allowed? Consider a single-period model consisting of a risk-free asset with prices A(0) = 1 and A(1) = 1 + r and two stocks with prices S_1(0) = 21, S_2(0) = 24 S_1(1) = {31 in scenario omega_1 19 in scenario omega_2 S_2(1) = {40 in scenario omega_1 16 in scenario omega_2 (a) Find r such that the model is arbitrage free and determine the risk-neutral probability/probabilities. (b) Assume r is such that there is no arbitrage. Find the arbitrage-free prices of i. a call option on the second stock with strike price 30. ii. a payoff max {S_1(1), S_2(1) at time 1. (c) For r = 0, construct an arbitrage opportunity. (d) Assume r = 0. Is there an arbitrage opportunity if borrowing money from the risk-free asset is not allowed