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:

Put Strike

Put Prices

2 $0.1

3 $0.5

4 $1.2

5 $2.1

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.