Question: Need help with this question 1. (30 points) Show that for a European call option, we get the stronger result C 2 S PV ()0

Need help with this question

1. (30 points) Show that for a European call option, we get the stronger result C 2 S PV ()0 Include a diagram to illustrate this. What does this tell us about the time value of a European call option? Remark: The result is the same for an American option, but we will discuss this next week

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