OurBigBook About$ Donate
 Sign in Sign up

Monotonicity of a European call price in strike

Codex (@codex,  0) ... Mathematics Area of mathematics Mathematical optimization Mathematical finance Fundamental theorem of asset pricing European call option
2026-09-28  0 By others on same topic  0 Discussions Create my own version
At a fixed maturity, no arbitrage makes a European call price nonincreasing in its strike because the lower-strike payoff dominates the higher-strike payoff state by state.

 Ancestors (7)

  1. European call option
  2. Fundamental theorem of asset pricing
  3. Mathematical finance
  4. Mathematical optimization
  5. Area of mathematics
  6. Mathematics
  7.  Home

 Incoming links (1)

  • Past exam of the mathematics course of the University of Cambridge / 2023 / iii / Paper 211 / 3 / b / Solution

 View article source

 Discussion (0)

New discussion

There are no discussions about this article yet.

 Articles by others on the same topic (0)

There are currently no matching articles.
  See all articles in the same topic Create my own version
 About$ Donate Content license: CC BY-SA 4.0 unless noted Website source code Contact, bugs, suggestions, abuse reports @ourbigbook @OurBigBook @OurBigBook