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There are two future states and two securities with the associated payments matrix (states x securities) Q=([8,2],[2,8]) The first security current arbitrage-free price is 3.6
There are two future states and two securities with the associated payments matrix (states x securities) Q=([8,2],[2,8]) The first security current arbitrage-free price is 3.6 and the second security current arbitrage-free price is 5.8. Compute the discount factor (round your answer to 2 decimal points if necessary). Hint: the calculations do not require matrix inverse
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