Consider a one-period economy with two times, 0 and T. There are S=3 states and N=3 securities with payoffs D=




23
30
46


12
21
27


10
10
10





and prices p=[27,17,x]

. Answer the following questions for two cases, x=7 and x=8. (a) Describe the set of all state-price vectors. (b) Describe the set of all risk neutral measures. (c) Is this market complete? Explain. (d) Does this market satisfy the Law of One Price? Explain. 1 (e) Does this market permit arbitrage opportunities? Explain. (f) If the market admits arbitrage, find an arbitrage strategy. Answers will vary.

Answers

Answer 1

The set of all state-price vectors can be described as the set of possible prices for the securities in each state. For the given values of x, the state-price vectors are [27, 17, 7] and [27, 17, 8].



The set of all risk-neutral measures represents the probabilities assigned to each state under which the expected payoffs are equal to the security prices. In this case, without specific probabilities given, it is not possible to describe the set of all risk-neutral measures.

To determine if the market is complete, we need to check if the number of securities is equal to the number of states. In this case, N = 3 and S = 3, so the market is complete.

The Law of One Price states that identical securities should have the same price. In this market, if the prices are the same for x = 7 and x = 8, then the market satisfies the Law of One Price. However, without specific values for x, it is not possible to determine if the Law of One Price is satisfied.

To determine if there are arbitrage opportunities, we need to check if it is possible to create a portfolio with non-zero initial cost and guaranteed positive future payoff. Without specific values for x, it is not possible to determine if there are arbitrage opportunities.

In the case of arbitrage opportunities, the specific arbitrage strategy would vary based on the values of x. Therefore, without specific values for x, it is not possible to provide an arbitrage strategy.

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Related Questions

Write a suitable indefinite article before the following words or phrases and write

them again. (Copy the questions)

___heirloom ___astronomer

___ewe ___hotel employee

___honest man ___advocate

___one eyed dog ___awkward moment

___awesome picture ___European tourist

___incompetent employee ___auspicious moment

___humane person ___MLA

___horrible joke ___M. A student​

Answers

Answer:

An heirloom,  An astronomer

A ewe, A hotel employee

An honest man, An advocate

A one-eyed dog, An awkward moment

An awesome picture, A European tourist

An incompetent employee,  An auspicious moment

A humane person,  An MLA

A horrible joke, An M. A student​

Explanation:

'A', 'an' and 'the' are the three articles that are used in English. They are used before nouns to specify them. 'A' and 'an' are indefinite articles and 'the' is the definite article. The indefinite article is used before the nouns which are not known or which are not identified. The definite articles are used before the identified noun. The indefinite article 'a' is used before the nouns that begin with a consonant sound. The indefinite article 'an' is used before the nouns that begin with a vowel sound.

Write three sentences.What is summer mainly about and what is your fav thing about summer time?

Answers

Is is what the top say your welcome

how do you calculate accumulated fund, detailed explanation please​

Answers

At any time, the value of the accumulated funds can be found by figuring out how much the organization's net assets (assets minus liabilities) are worth. The money saved up is like the capital of a business that makes money.

This is further explained below.

What is the accumulated fund?

Generally,  A non-profit group's extra money is put into an accumulated fund (NPO). The accumulated fund grows when there is a budgetary surplus, just like the retained earnings of a business that makes money.

In conclusion, You can always figure out how much the money you have saved is worth by figuring out how much the organization's net assets are worth. The money saved up is the same as the capital of a business that makes money.

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Haughton company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of july, the firm processed three jobs: x13, x14, and x15, of which x13 was started in june.

Answers

................ explaination

What is unethical behavior?
Please help!!! in your own words

Answers

Answer:

Unethical behavior is when people behave in a bad, immoral, unfair, or inappropriate way.

Explanation:

Many countries have laws that define bad, unethical behavior as criminal, to discourage people from doing things like hurting or cheating one another.

__________________

Brooklyn is paid biweekly. Her annual salary is $63,700. What is her biweekly gross pay?​

Answers

Brooklyn's biweekly gross pay, given the amount that she is paid annually, is $ 2, 450

How to find the biweekly gross pay?

A person's biweekly gross pay is the amount that they are paid every 2 weeks that is not adjusted for taxes and other deductions.

In a year, the number of two week periods are :

= Number of weeks / 2

= 52 / 2

= 26 biweekly periods

The biweekly salary of Brooklyn is therefore :

= Annual salary / number of biweekly periods

= 63, 700 / 26

= $ 2, 450

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now suppose the government gives a $30 subsidy to buyers and imposes a $10 tax on sellers. what is the consumer surplus after the tax and subsidy

Answers

The consumer surplus after the tax and subsidy benefit can be identified, whereas the opportunity cost may be harder to identify.

What is subsidy ?A subsidy is a direct or indirect payment to an individual or business, usually in the form of a cash payment from the government or a targeted tax relief. In economic theory, subsidies can be used to offset market failures and externalities and increase economic efficiency.For example, if the government sends financial aid reimbursing him 15% of all medical expenses to a group that pays 15% income tax. Exactly the same subsidy is achieved by granting a health tax credit.Tax subsidies are also called tax incentives. Tax cuts are often viewed as subsidies.The purpose of the subsidy is to support or support  key sectors of the economy or national infrastructure. While subsidies can have  direct positive effects on industries and companies involved, economists argue that subsidies impede free trade and create market inefficiencies.

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BOVE
Part C
Research online and Identify at least five skills that an administrator working for an automobile dealership would need. You can refer to job
descriptions provided by recruitment agencies. How do you think these skills will help newly appointed administrators to perform their job?

Answers

Answer:

Here are five key skills that an administrator in an automobile dealership would need:

Communication/interpersonal skills: Administrators would have to work with clients that come in for test drives. Having good interpersonal skills would help them respond to customers’ queries more effectively. A friendly and outgoing personality would make them more approachable for the customers. An ability to speak and understand multiple languages would help an administrator deal with customers who are not fluent in English. An administrator must be able to communicate effectively, both verbally and through nonverbal cues.

Organizational skills: Administrators need to be well organized in their work involving customers. They would be required to schedule and organize test drives, arrange meetings, keep a record of customers’ documents, handle car insurance matters, and provide other assistance to customers.

Prioritize: Administrators would have to handle several tasks (described earlier), so they should be able to prioritize and schedule tasks effectively.

Manage: An administrator would have to manage the daily operations, such as ensuring that customers submit authentic documents, making appointments, and scheduling test drives. The administrator is also responsible for managing employee behavior, safety, and compliance with the company’s policies.

Reasoning and mathematical skills: An administrator would need to have above-average mathematical skills in order to maintain the company’s accounts dealing with sales and servicing. The person would need logical reasoning skills to facilitate decision making and process management.

Explanation:

PLATO

Apple used easy-to-open, clean-lined, well- designed packaging for all of its products. It is one of the distinguishing marks of its branding. By designing and creating such distinctive and pleasing packaging, what does Appel inspire in its customers?

Answers

Brand loyalty is what apple does by well- designed packaging for all of its products. It is one of the distinguishing marks of its branding.

What is meant by design packaging?

Form, structure, materials, color, imagery, typography, and regulatory information are all connected with auxiliary design aspects in packaging design to create a product that is fit for marketing.

However, there are a lot of factors to consider when creating a packaging because design must have a purpose. It must safeguard what's within. It must make storage and distribution simple. On a shelf stacked with other products, it must advertise who it is and bring attention to itself.

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Question in attachment​

Question in attachment

Answers

B - he owns the business and is doing the physical work for it

if the required reserve ratio

if the required reserve ratio

Answers

Answer:

4

Explanation:

Formula:  1 / Reserve money ratio   ->    1 / 0.25 = 4

"Whenever Andrew considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the newest technology. For Andrew, Jeremy is a(n) __________ in the diffusion of innovation curve."

Answers

Answer: innovator

Explanation:

From the question, we are informed that whenever Andrew considers upgrading his personal computer system, he normally consults with Jeremy, a knowledgeable friend who always has the newest technology.

Regarding the question, Jeremy is an innovator. An innovator is someone who has embraced new ideas and is always trying out new gadgets and technology.

A company purchases a piece of machinery. This machinery is now the company's _____.

A. asset
B. liability
c. equity
D. capital

Answers

When a company purchases a piece of machinery, the machinery becomes the company's A. asset.

What is an asset?

An asset is a resource owned or controlled by a business or an economic entity, which produces value or more resources.

Assets can be classified into three classes, and they generally fall into the following categories:

CurrentNon-currentPhysicalIntangibleOperatingNon-operating.

Thus, the machinery does not become a liability, equity, or capital but an asset.

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Do you spill the tea or can you keep a secret ?

Answers

Answer:

The phrase "spill the tea," used as an encouragement to gossip, has been used in everything from Harlequin romance novels to "RuPaul's Drag Race"; "no tea, no shade" has been featured in explainers on black gay slang; comedian Larry Wilmore used "weak tea" regularly on his 2015-16 Comedy Central show in response to

The expression "Do you spill the tea or can you keep a secret ?" simply means do you gossip or keep secrets

However, the expression " do you spill the tea describe a condition or situation where one gossip about other people's personal matter.

This goes to say that an individual belongs to any of these two categories:

One who shares people's personal issue with others by gossipingOne who has a closes his/her bucal cavity and does not talk any how. That is; someone who keeps secrets well

What is gossiping?

This simply means the act of sharing, talking and repeating rumors and personal stories of people to other people

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ECONOMICS EVERFI QUESTION When comparison shopping, all of these hint at a good deal EXCEPT_____________________. lower-priced models offer more features. there is a coupon available for additional percentage off the price. the sale price is the cheapest available. there are more positive customer reviews than negative reviews.

Answers

Answer:

the sale price is the cheapest available.

Explanation:

Comparison shopping is the practice or nature of shopping where one compares the price of an item different sources which the individual wishes to purchase. This is done in advance before the actual purchase or shopping. It is done to achieve the best deal in price.

Comparison shopping is ideal or beneficial when buying items which can be easily researched through some advertisements. When doing comparison shopping it is not a good deal to always go for the lowest price available.

Thus, it is not considered a good deal when you go for the sale price that is the cheapest available.

The sentence which best complete the phrase is lower-priced models offer more features (option A)

When we want to buy an object it is advisable to find out its value in different places to find the cheapest one. It is also advisable to look for discount coupons or promotions to save us a little money.

Another activity that we can carry out is to consult on the internet the review of other buyers about the product to make sure that its operation is optimal.

Generally, the cheapest models are the ones that offer the fewest features. For example, if I want to buy a bicycle, its price can vary based on different characteristics such as the material of the frame (lighter is worth more) or the number of speeds (more speeds are worth more).

According to the above, the correct answer is option A. because it mentions an aspect related to low-value objects.

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our self-talk consists of words pictures and emotions. as we imprint our affirmations we

Answers

Self-talk is your inner voice or the way you speak to yourself. Although you almost probably are doing it without realizing it, you almost certainly are. In order to produce an internal monologue throughout the day, this inner voice mixes conscious thoughts with ingrained beliefs and biases.

What are the four categories of self-talk?

Your inner discourse is known as self-talk.

Personalizing. You own all of the guilt for yourself.

Magnifying.

Catastrophizing.

Polarizing.

What are the five tiers of one's own self-talk?

Helm Stetter outlines the "Five Levels of Self-Talk" (Negative Acceptance, Recognition and Need to Change, Decision to Change, The Better You, and Universal Affirmation) and offers advice on how to navigate each level for significant life changes.

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there is a surplus of a new brand of cereal on the market. what will likely happen to the price of the cereal?

Answers

Answer:

The price of the cereal would fall.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

When there is a surplus of a new brand of cereal in the market. What will likely happen to the price of the cereal is that the its price would fall.

effective economic demand requires

Answers

What is this supposed to refer to ?

a company produces goods or products locally and sells them in foreign markets. this is called:

Answers

A business produces goods locally and sells them on international markets. This is called Exporting .Option A is correct.

The practice of producing a good or service in one country and selling it to customers in another country is known as exporting in economics. Exporting has the advantage of allowing you to significantly expand your market, making you less reliant on any one of them.

Better margins and larger economies of scale may result from increased production. Because you can adapt existing products to new markets, your research and development budget might work harder.

Macroeconomic risks, such as the possibility of inflation, are examples of these risks. political dangers, such as economic sanctions or civil unrest in a specific nation or region; and risks that are specific to the business, like the possibility of less demand in the market and changes in the creditworthiness of customers.

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Complete question as follows:

A company produces goods or products locally and sells them in foreign markets. This is called:

A. exporting

B. smuggling

C. transferring

D. importing

Overnight, Tiger Technology reported a loss of 10 cents per share. Tiger's loss was not as bad as most analysts expected. In fact, the stock's price fell by 30% yesterday because of one analyst said the company would lose at least 50 cents a share. Assuming the market is stable today and no other news is released, what performance would you expect for Tiger Tech's stock today?
a. Good (price should increase and reverse at least some of yesterday's decline)
b. Bad (price should decline move)

Answers

Considering the fact that Tiger Technology's loss was not as bad as most analysts had predicted, we would expect that Tiger Tech's stock today will perform well. Therefore, the expected answer is "Good (price should increase and reverse at least some of yesterday's decline)", The correct option is A.

Yesterday, the stock price of Tiger Technology fell by 30% because one analyst predicted that the company would lose at least 50 cents per share. Despite this prediction, the company reported a loss of 10 cents per share, which is less than what analysts had predicted.

Therefore, it is likely that the stock price of Tiger Technology will increase today because the company's loss was not as bad as expected. Moreover, the market is stable today and no other news has been released that would negatively impact the company's performance. As a result, the company's stock price should increase, at least partially reversing the decline that it experienced yesterday.

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The Magnuson-Moss ______ Act directs manufacturers and sellers to detail the service coverage, terms, and exclusions on products.

Answers

Answer: Warrantly

directs manufacturers and sellers to detail the service coverage, terms, and exclusions on products.

What is the answer I chose the one I thought was the answer

What is the answer I chose the one I thought was the answer

Answers

Answer: I think that ones the answer too

Answer:

c is

Explanation:

According to exodus 31:15 in whose honour we spend the Sunday?

Answers

Answer:

God

Explanation:

On sunday is sabbath of complete rest, it is something holy to God

assuming that prices rise over time, which inventory cost flow assumption will result in the lowest ending inventory?

Answers

Answer: LIFO

Explanation:

under the modified accrual basis of accounting, gasb standards for property tax revenue recognition provide that revenue should not be recognized for property taxes collected:

Answers

Revenue for property taxes collected more than 30 days after the fiscal year's end should not be recognised on the accrual method of accounting, according to GASB guidelines.

For state and municipal governments in the United States, generally accepted accounting principles (GAAP) are developed by the Government Accounting Standards Board (GASB), a private non-governmental organisation.

The transaction process must be initiated by a crucial event in accordance with generally accepted accounting standards (GAAP). According to GAAP, revenues are acknowledged when they are earned and realised, not necessarily when they are received. However, profits are frequently made and received in a single transaction.

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TRUE / FALSE. a food and beverage company like pepsi would most likely use process costing.

Answers

True. A food and beverage company like Pepsi would most likely use process costing. Process costing is an accounting method used by businesses that produce large quantities of identical products

A food and beverage company like Pepsi would most likely use process costing. This method is particularly suitable for the beverage industry, where companies like Pepsi manufacture large volumes of standardized beverages. This means that the production cost of each unit is relatively low and the cost of production is spread over all units produced.

Process costing allows the company to determine the cost per unit by dividing the total cost of production by the total number of units produced. This method of costing is efficient and effective for companies that produce a large number of identical products through a continuous process. By using process costing, Pepsi can efficiently track and allocate production costs, ensuring accurate product pricing and informed financial decision-making.

In conclusion, process costing is a costing method that is used in industries where a large number of identical products are produced through a continuous production process. Therefore, it is most likely that a company like Pepsi would use process costing to determine the cost of their beverage products.

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Emilio is photographing a series of hills on his uncle's farm. He remembers that he needs to try to add a foreground to his image to make it appear three dimensional. How is he MOST LIKELY to add this foreground? A. B. C. D. He might change his position to include some foreground items such as rocks or grasses. He might tilt his camera up to better capture the tops of the hills. He might add some framing trees in the middleground of his image. He might circle around to the side of the hills to capture the cows standing on top. PLS HELP!!​

Answers

Emilio is photographing a series of hills on his uncle's farm. He remembers that he needs to try to add a foreground to his image to make it appear three-dimensional. He is most likely to add this foreground Option A. He might change his position to include some foreground items such as rocks or grasses.

The foreground of an image is usually the element that is closest to the viewer. The foreground is often used to add depth to an image. If a photographer wants to create a 3D appearance in his image, he must ensure that the image has a foreground, mid-ground, and background. It is possible to include a foreground in a photo by modifying the angle of the shot and including elements in the foreground.

Emilio might change his position to include some foreground items such as rocks or grasses. By doing so, he will be adding depth to his image. Another way to add foreground to an image is to use framing trees in the middle ground of the image, but this may not provide the depth required. Tilt his camera up to better capture the tops of the hills or circling around to the side of the hills to capture the cows standing on top are not recommended, as the question seeks to add a foreground.

Therefore, Emilio is most likely to add the foreground by changing his position to include some foreground items such as rocks or grasses. Therefore, the correct option is A.

The question was incomplete, Find the full content below:

Emilio is photographing a series of hills on his uncle's farm. He remembers that he needs to try to add a foreground to his image to make it appear three-dimensional. How is he MOST LIKELY to add this foreground?

A. He might change his position to include some foreground items such as rocks or grasses.

B. He might tilt his camera up to better capture the tops of the hills.

C. He might add some framing trees in the middle ground of his image.

D. He might circle around to the side of the hills to capture the cows standing on top.

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technological advances allow smaller companies to compete with larger companies. group of answer choices true false

Answers

True, Technological advances allow smaller companies to compete with larger companies.

What is company?
A company is a legal entity created by a group of people to conduct and manage a business enterprise, whether it be commercial or industrial. Depending on the corporate law of its jurisdiction, a company may be set up in a variety of ways for tax and financial liability reasons. The type of business structure a company chooses, such as a partnership, sole proprietorship, or corporation, will typically depend on the industry it operates in. The ownership structure of the business is also indicated by these structures. Additionally, they can tell private from public companies. Both have different ownership arrangements, laws, and rules regarding financial reporting.

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how did Suzy Batiz failures set her up for success?

Answers

Answer:

I'm not sure

Explanation:

Not enough explanation.

Not enough information

The Girl Scouts would like to estimate the proportion of people who consider Thin Mints to be their favourite Girl Scout cookie. A pilot sample of 60 cookie customers found that 15 favoured Thin Mint cookies. The total sample size needed to construct a 90% confidence interval for the proportion of customers who favour Thin Mint cookies with a margin of error equal to 6% is ________. 235 142 187 270

Answers

The total sample size needed to construct a 90% confidence interval for the proportion of customers who favor Thin Mint cookies with a margin of error equal to 6% is 235.

The Girl Scouts would like to estimate the proportion of people who consider Thin Mints to be their favorite Girl Scout cookie. A pilot sample of 60 cookie customers found that 15 favored Thin Mint cookies. The total sample size needed to construct a 90% confidence interval for the proportion of customers who favor Thin Mint cookies with a margin of error equal to 6% is 235.

What is the formula for determining the minimum sample size?

The formula for determining the minimum sample size is:

N = [(Z² * p(1-p)) ÷ E²] ÷ [1 + ((Z² * p(1-p)) ÷ E²N: The minimum sample size

Z: The confidence level p: The expected proportion

E: The margin of error.

In this problem, Z is 1.65 (90% confidence level), p is the pilot study's proportion (15/60 = 0.25), and E is 0.06.

You can substitute the provided values into the formula and calculate it: Minimum Sample Size = [(1.65)² * 0.25(1-0.25)] ÷ (0.06)² ÷ [1 + (1.65)² * 0.25(1-0.25)]

Minimum Sample Size = 234.97 ≈ 235.

Hence, the total sample size needed to construct a 90% confidence interval for the proportion of customers who favor Thin Mint cookies with a margin of error equal to 6% is 235.

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PLS HELP- Which Religion has the most followers in France? A. Lutheranism B. Judaism C. Anglicanism D. Catholicism A spinner with 10 equally sized slices has 4 yellow slices, 4 red slices, and 2 blue slice. Yolanda spun the dial 1000 times and got the following results. Answer the following. Round your answer to the nearest thousandth Lamar & Co., makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Plain FancyUnit selling price $ 25.00 $ 36.00 Variable cost per unit 13.00 20.00 Sixty percent of the unit sales are Plain, and annual fixed expenses are $45,000. Assuming that the sales mix remains constant, compute the total number of units of each product that the company must sell to break even. Show all computations. terraces are used in agriculture to a.practice shifting cultivation, b. increase the amount of arable land, c. increase the amount of erosion, d. increase the effects of deforestation How can a research question help to guide your research?PLS ANSWER THIS CORRECTLY!! lipoproteins that carry mostly cholesterol and phospholipids out of the plasma to the liver are called sales tax on a purchase at Sam's club is 8.42%. if your buy $ 245.32 worth of merchandise what will the cost be with sales tax the 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity ratio?a) 1.000b) 1.428c) 0.411d) 0.700e) None of the above a steel cable supports an actor as he swings onto the stage. the weight of the actor stretches the steel cable.a. both shear modulus and bulk modulus. b. Young's modulusc. bulk modulus.d. shear moduluse. both Young's modulus and bulk modulus. A restaurant is a workplace for someone whose career specialty is in Write a short introduction to the article that might accompany this photo. Submit The z values for a standard normal distribution range from minus 3 to positive 3, and cannot take on any values outside of these limits. True or False. Which of the following choices is NOT GEOMETRIC SEQUENCE.a.2, -4, 8, . . . b.8, 2, 0.5, . . .c.1/2, 1/6, 1/18, . . .d.-7, -2, 3, . . . place value of 7 in 872 164 PLS HELP QUICK 50 POINTS!List every single thing Paul Revere did on April 18, 1775. There are tools of genocide that are used to carry them out, what are those tools?List at least 5 tools. N what city does this person live? "My city is an urban area with more than four million people. Like many people here, I work in manufacturing. My brother is a commercial fisherman. We are surrounded by mountains, but also have many beautiful beaches. Our Mediterranean climate makes the weather generally mild. It rains occasionally. Sometimes we worry about chaparral fires in the nearby hill." 56=1/2H (6+10) what is H ? What are the rigid transformations that will map ABC to DEF? Explain how to draw a line segments that measures 2 7/16 inches.