Consider a two period "perfect capital market" setting w/ uncertainty

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Consider a two period "perfect capital market" setting w/ uncertainty. Namely under t=2 "good economy" and "bad economy" will occur with equal chance. Everybody has the same information.

No cheating etc. Consider two securities X and Y with the following promised time2 payoffs and time1 prices. Recall that in this economy anybody promising to pay 100TL under good

Time 2 good    Security X   Security Y
Time 2 bad   100 TL   200 TL
Time 1 price   70 TL   140 TL
80 TL   170 TL

Answer the following question:

a) Are the two time1 prices in harmony or are they out of line?

b) Is there any basis to think that one of them is "cheap" and the other is "dear"?

c) Can you make a profit by selling the "dear" one and simultaneously buying two of the "cheap" one?

d) ?f your answer to ©? is YES, Explain how it would work at t=1 and t=2