Question 3. Swaps. A swap contract calls for the following: The buyer X pays the seller Y an amount a to enter into the contract at time 0. The seller agrees to exchange 1 share of asset A for 1 share of asset B at time 1. The share prices of A and B at times t = 0 and t = 1 are S and SB, respectively (at time t = 0, the share prices SA, SP are not known and they are risky). There are no dividends paid by these stocks. Assume there is a riskless bond available with rate 1+r, and that there is no arbitrage in the market. What is the market value of r