Market Price Cash Flow in One Year

Security Today Poor Economy Good Economy

X $2008400$

Y $6000840$

Z $???8404200$

Based upon the information provided about securities $x,Y,$ and $Z,$ the risk$-$free rate of interest is closest to: Show work

A$)6\%$

B$)5\%$

C$)4\%$

D$)10\%$

What is the no$-$arbitrage price for security $Z?$ Show work

A$)$ $$4000$

B$)$ $$1600$

C$)$ $$3200$

D$)$ $$800$