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State security 1 (SS1) payoff year 1: $1 if state 1 occurs and $0 if state 2 occurs. State security 2 (SS2) payoff year 1:

State security 1 (SS1) payoff year 1: $1 if state 1 occurs and $0 if state 2 occurs. State security 2 (SS2) payoff year 1: $1 if state 2 occurs and 0 of state 1 occurs. SS1 Price now: 0.4 SS2 Price no...

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