Question: 5. Prove the following condition using an arbitrage argument. In your proof, show the initial - positive cash flow when the condition is violated

5. Prove the following condition using an arbitrage argument. In your proof, show the initial - positive cash flow when the condition is violated and prove that there are no liabilities at expiration. The condition is: Ceo (X1) Co(X2) < PV(X2-X1). This means that the difference between a European Call option with low strike price X and a European Call option with high strike price X2 is less than the present value of the difference between the two strike prices.

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