Determine whether or not arbitrage is possible in the following settings:

QUESTION 1: ARBITRAGE Determine Whether or not arbitrage is possible in the following settings: Setting A: Assume the prices for assets A1, A2 and A3 are all $1. Bad State Med State Good State A1 1 1.2 1.3 A2 0.5 1.5 3 A3 0.5 1.8 3 Setting B: Assume the prices for assets A1, A2 and A3 are all $1. Bad State Med State Good State A1 1 1.2 1.3 A2 .5 1.5 2 A3 0 1.8 3