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Suppose that two securities si and so can be purchased today at price shown in the table below, and can each produce only one of the two payoffs (referred to as state 1 and state 2) a year from now: Security Price Payoff in Payoff in state 1 (41) state 2 (42) 0 9 3 0 $1 S2 1 3.1 Determine the state prices. 3.2 Is arbitrage opportunity possible? Justify your answer. 3.3 Suppose that the risk-free rate is 6.5%. Find the risk-neutral probabilities and the pricing formula