Show that if S is the midpoint between the strikes K, and K, >K, then if the time to maturity of option contracts is small, we should have 2 C(K,)-C(K,)=,5K Here C(K) denotes the fair value of a call with the corresponding strike. Verify that the approximation holds on real market data (this is sometimes known as the 'midpoint rule), by using options on stocks that are near the midpoint between strikes. Show that if S is the midpoint between the strikes K, and K, >K, then if the time to maturity of option contracts is small, we should have 2 C(K,)-C(K,)=,5K Here C(K) denotes the fair value of a call with the corresponding strike. Verify that the approximation holds on real market data (this is sometimes known as the 'midpoint rule), by using options on stocks that are near the midpoint between strikes