DSE DOUBT

[Sris]

PLZ SOMEONE HELP ME OUT...PLZ REPLY TO MY QUERIES EARLIER POSTED...

[Aashna]

for which question you want the answer. could you please point out again?
the arbitrage one ?

[Sris]

.ITS FROM DSE 2005 SUBJECTIVE Q3 PART (A)...RURAL URBAN ONE...PLZ HELP...


ITS A LONG ONE...I AM NOT ABLE TO COPY THE QUESTION HERE

JUST HELP ME SOLVE (b) part of it...reliance one....rest i have solved...

[Sris]

suppose there are two states...today n tommorow. tommorow may b state 1 or state 2 or state 3.there are 3 securities n their prices tommorow in various states are as (1,1,1) for security 1..for security 2 it is (1,3,-1)..n for security 3 its (-2,-1,0)..price today of these securities are 4,1,5 respectively.now suppose there is a fourth security whose price tomorrow is (3,1,4).what should be the price of fourth security today so that there are no arbitrage possibilities??
    plz solve this one tooo...