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What is the result corresponding to that in Problem for European put options?
Problem:
Suppose that c1, c2, and c3 are the prices of European call options with strike prices K1, K2, and K3, respectively, where K3 > K2 > K1 and K3 K2 = K2 K1. All options have the same maturity. Show that
(Hint: Consider a portfolio that is long one option with strike price K1, long one option with strike price K3, and short two options with strike price K2.)
1 what type of chart is this?2.what type of price information does it show?3.what is the prevailing trend?4.what does
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