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There are two future states and three securities with the associated payments matrix (states by securities) Q2=(1010821812) The first security current price is 9 ,
There are two future states and three securities with the associated payments matrix (states by securities) Q2=(1010821812) The first security current price is 9 , the second security current price is 5 and the third security current price is 14 . Are there any arbitrage opportunities? Hint: the calculations do not require matrix inverse. Select one: No, all securities are fairly priced and there are no arbitrage opportunities Yes, there are arbitrage opportunities The market is incomplete, and therefore it is not possible to answer this
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