There are three states of the world in the economy at a future date. The stock market index takes the values of 9,6, and 3 in states 1,2, and 3 respectively. There are two option securities on the stock market index.

(1) Put option with strike price of 7.

(2) Put option with strike price of 4.

The current price of the stock market index, option security (1) and option security (2) is $6, $2 and $1 respectively, compute the price of an A-D security that pays $1 in state 1