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bachelor in business administration
Polytechnic State University Sanluis Jan-2006 - Nov-2010
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Polytechnic State University Jan-2012 - Nov-2016
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Harvard Square Academy (HS2) Mar-2012 - Present
Category > AccountingPosted 18 May 2017My Price4.00
Security A pays $30 if state 1 occurs and $10 if state 2 occurs
Security A pays $30 if state 1 occurs and $10 if state 2 occurs. Security B pays $20 if state 1 occurs and $40 if state 2 occurs. The price of security A is $5 and the price of security B is $10.
a) Set up the payoff table for securities A and B.
b) Determine the prices of the two pure securities.