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Suppose there are three states of nature and three traded assets with the following payoffs. Each column represents an asset and each row represents a

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Suppose there are three states of nature and three traded assets with the following payoffs. Each column represents an asset and each row represents a state of nature. Payoff (1 2 3 0 2 1 2 3 1 2 Price = 1.5 1.4) - Find out the risk free interest rate. Hint: First figure out the replication portfolio for risk free asset. - II ven current information please find out the price of the following three assets. 0 (1 Payoff = {0 10 0 0 1 0 1 III Based on question II, what is the price of the following asset? Payoff -C lv Is the market in equilibrium? Are there any arbitrage opportunities? Suppose there are three states of nature and three traded assets with the following payoffs. Each column represents an asset and each row represents a state of nature. Payoff (1 2 3 0 2 1 2 3 1 2 Price = 1.5 1.4) - Find out the risk free interest rate. Hint: First figure out the replication portfolio for risk free asset. - II ven current information please find out the price of the following three assets. 0 (1 Payoff = {0 10 0 0 1 0 1 III Based on question II, what is the price of the following asset? Payoff -C lv Is the market in equilibrium? Are there any arbitrage opportunities

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