Show that if interest rates are zero and call option prices


Show that if interest rates are zero and call option prices are a differentiable function of strike then the derivative of the prices with respect to strike must lie between -1 and 0. What if interest rates are non-zero?

Request for Solution File

Ask an Expert for Answer!!
Engineering Mathematics: Show that if interest rates are zero and call option prices
Reference No:- TGS01552191

Expected delivery within 24 Hours