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There are two states of the world (S1, S2) on a future date. There are two securities available to investors. Investors in Security A receive

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There are two states of the world (S1, S2) on a future date. There are two securities available to investors. Investors in "Security A receive $50 in S and $150 in S2. Investors in "Security B receive $100 in Sy and have to pay $50 in S2. "Security A and Security B are traded at $90 and $5 respectively. Compute the state prices $ and 2. What is the price of risk-free security in this economy? Construct a security that pays $80 in Sy and $60 in S2. Compute its price

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