There are two states. You are given the payoff information in the table below. In...
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Accounting
There are two states. You are given the payoff information in the table below. In the absence of arbitrage, what is the price of Asset 3? [Hint: consult the material on the law of one price in the APT slides.]
Asset price payoff in state 1 payoff in state 2
asset 1 1 2 0
asset 2 3 0 5
asset 3 ??? 22 15
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