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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 arbitragefree price is 4.5
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 arbitragefree price is 4.5 and the second security current arbitragefree price is 4.7. Compute the discount factor (round your answer to 2 decimal points if necessary). Hint: the calculations do not require matrix inverse. Cl
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