2. Trading model: As in class, consider a model of a financial market with N assets and M possible outcomes. The payoff of asset n at time t = 1 if outcome m occurs is Dnm, where DERNXM, and its price at time zero is so, where sº ERN. A portfolio of stocks is represented by a vector h = RN, where h₂ represents the number of shares owned of asset n. We also define the augmented matrix, D = [-sº, D], the reachable payoff space R = {DTh: hЄRN}, and the augmented payoff space R = {DTh: hЄRN}. Consider the market with -2 1 1 Ꭰ = -3 1 2 -16 8 9 (a) What is the t = 0 price of the portfolio h = (1,1,0) in this market? (b) Is this market complete? (c) Does the law of one price (LOOP) hold in this market?