Question: please don't copy from other post thanks (Call strikes) Consider a family of European call options on a non-dividend- paying stock, each option being identical

please don't copy from other post thanks

(Call strikes) Consider a family of European call options on a non-dividend- paying stock, each option being identical except for its strike price. The value of the call with strike price K is denoted by C(K). Prove the following two general relations using no-arbitrage arguments: (a) K2 > Ki implies K2 K > C(K1) C(K2). (b) K3 > K2 > Ki implies K3 - K2 K2 K (K2) C(K1) C(K3). K3 K3 K1 CKS (**)C18+(- ) :) (Call strikes) Consider a family of European call options on a non-dividend- paying stock, each option being identical except for its strike price. The value of the call with strike price K is denoted by C(K). Prove the following two general relations using no-arbitrage arguments: (a) K2 > Ki implies K2 K > C(K1) C(K2). (b) K3 > K2 > Ki implies K3 - K2 K2 K (K2) C(K1) C(K3). K3 K3 K1 CKS (**)C18+(- ) :)

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