Question 32 Consider three securities that will pay risk-free cash flows over the next three yearsand that have the current market prices shown here:SecurityPrice Today ($) || Cash Flow inCash Flow inCash Flow inNameOne Year ($) Two Years ($) Three Years ($)В1$92.25100B2$84.011000.B3$380.830.500Calculate the no-arbitrage price, or the price that eliminates any arbitrageopportunities, of a new security, B4, that pays risk-free cash flows of $500 in one yearand $1,000 in three years.The current no-arbitrage price of Security B4 is:(round your answer to two decimal places)

The cash flows of Security B4 can be replicated by buying 5 units of Security B1 and 2 units of…

Consider three securities that will pay risk-free cash flows over the next three years and that have the current market prices shown here: Security Price Today ($) | Cash Flow in Cash Flow in Cash Flow in Name One Year ($) Two Years ($) || Three Years ($) В1 $92.25 100 B2 $84.01 100 B3 $380.83 0. 500