Consider a double-period security market consisting of a bank account with interest rate y= 0.2 and one stock. Let the sample space N be given by 2 = {wi, w2, w3} and let the price of the security be given by S(0) = 6, S(1, wr) = S(1, w) = 8.4, S(1, w3) = 6, S(2, wi) = 11.52, S(2, w2) = 4.32, S(2, w3) = 7.2. %3D %3D %3D (i) Find a martingale measure, and argue that this market has no arbitrage opportunities and the market is complete. (ii) strike price K places) at times t 0 and t = 1. Consider the Asian put option with exercise time t 2 and 8. Find the fair price of this option (up to 5 decimal %3D

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