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Use the table for the question(s) below. Security Cash flow today Cash flow in one year A 0 100 B 100 0 C 100 100

Use the table for the question(s) below.

Security

Cash flow

today

Cash flow

in one year

A

0

100

B

100

0

C

100

100

Suppose you are in a normal market. (Recall: normal market is a competitive market in which there are no arbitrage opportunities). The value of security "A" is 90, the value of security B is ____, the value of security C is ___.

A.

100; cannot determine for C, need interest rate information

B.

100; 190

C.

100; 200

D.

cannot determine for both B and C, need interest rate information

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