Q. 3 (10 points) Let S0A and STA be the spot price of asset A at time t=0 and t=T respectively. We only consider S0A0 and STA0. The asset does not generate any cost nor income for its holder. There is an asset B of which the spot price at t=T is STB=31STA for STA0. (a) (2 points) What must be the price of asset B at t=0,S0B ? (b) (8 points) Show how the market will adjust if the price of asset B is not equal to your answer in part (a)