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Suppose the state of nature is summarized by the value of the market portfolio which has a discrete probability distribution with possible values of: [$1,$2,$3,$4].

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Suppose the state of nature is summarized by the value of the market portfolio which has a discrete probability distribution with possible values of: [$1,$2,$3,$4]. A range of put options with different strike prices are available on the market portfolio and their prices are given below: Using the above information to answer Questions 1316 Calculate the price of the Arrow-Debreu security that pays $1 in the state where the value of the market portfolio is equal to $2

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