Given before the question:

x = 5

y = 5

Q19. In the market three risky assets are traded with payoffs S=1.11.11.11.11.41.210.81.31.30.90.9 Each column in the matrix S represents one asset. The price of all assets is 1 . a. What is the replicating portfolio for the payoff S~=0.50.30.30.5 There is an investment opportunity that costs y. This investment pays off S~=xx00. b. What is the replicating portfolio for the payoff of the investment opportunity? c. What is the NPV of the investment opportunity