r>0 and same maturity date T>0 (Greater or equal to) Question 1 What are the no-

Question

r>0 and same maturity date T>0 (Greater or equal to)

Question 1

What are the no-arbitrage boundary conditions for the value of a European vanilla Call option with strike price K1?

Question 2

Another European vanilla Call option with strike price K2 > K1 is trading in the market. What are the new no-arbitrage boundary conditions for the value of the European vanilla Call option with strike price 1K?

Question 3

Another European vanilla Call option with strike price 3K is trading in the market. At the expiry of the three options (i.e. at 0T=), what are the new no-arbitrage boundary conditions for the value of the European vanilla Call option with strike price 1K, if k3 is less than K1 and K1 is less than k2   ;  k1 - K3 = K2 -K1

Explanation / Answer

hi mate
im also studying from curtin university and im in my final semester
this is the same question i've received from finance derivatives assignment 2
which campus r u from?
we can work together for the solutions?
i'll send you my answers asap when i finish discussing with my friends
then you send yours ok?

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