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  3. za=[0,4,4],zb=[4,0,1]. (a.) construct a portfolio

ZA=[0,4,4],ZB=[4,0,1]. (a.) Construct a portfolio of assets A and B, and write three options on...

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ZA=[0,4,4],ZB=[4,0,1]. (a.) Construct a portfolio of assets A and B, and write three options on the portfolio that complete the market. (b.) Determine the Arrow-Debreu security prices in terms of the option prices in (a.). (c.) Determine the risk-free rate of return based on the Arrow-Debreu security prices in (b.)

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