What are the prices of pure security 1

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Reference no: EM131245345

You are given the following information:

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a) What are the prices of pure security 1 and pure security 2?

b) What is the initial price of a third security i, for which the payoff in state 1 is $6 and the payoff in state 2 is $10?

Reference no: EM131245345

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