You are given the following information about a securities market: There are three nondividend-paying stocks, X, Y, and Z. The current stock prices are (X, Y, Zo) = (100, 100, 100). The yearly compounded risk-free interest rate is 1%. There are four possible outcomes for the prices of X, Y, and Z one year from now: (X1(w), Y1(w), Z1(w)) = (120, 110, 110) (110, 120, 100) (90, 80, 100) (80, 90, 95) :W=W1 :w=W2 :w= W3 :w=W4. The market is complete, which means a unique risk-neutral mea- sure exists. Let V.C.X be the current price of a call option on X, and V.P.2 the current price of a put on Z. Both options expire in one year, and have a common strike price of K 100. Let V.XYZ be the initial price of a type of forward exchange, which at time T = 1 pays X1 +Y1 - 21. = Compute the risk-neutral measure (25 pts), and VC,X (25 pts), and V.P.Z (25 pts), and V.XYZ (25 pts). You are given the following information about a securities market: There are three nondividend-paying stocks, X, Y, and Z. The current stock prices are (X, Y, Zo) = (100, 100, 100). The yearly compounded risk-free interest rate is 1%. There are four possible outcomes for the prices of X, Y, and Z one year from now: (X1(w), Y1(w), Z1(w)) = (120, 110, 110) (110, 120, 100) (90, 80, 100) (80, 90, 95) :W=W1 :w=W2 :w= W3 :w=W4. The market is complete, which means a unique risk-neutral mea- sure exists. Let V.C.X be the current price of a call option on X, and V.P.2 the current price of a put on Z. Both options expire in one year, and have a common strike price of K 100. Let V.XYZ be the initial price of a type of forward exchange, which at time T = 1 pays X1 +Y1 - 21. = Compute the risk-neutral measure (25 pts), and VC,X (25 pts), and V.P.Z (25 pts), and V.XYZ (25 pts)