Call options on the same underlying asset

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Reference no: EM131456983

Call options on the same underlying asset and with the same maturity, with strikes K1 < K2 < K3, are trading for C1, C2 and C3, respectively, with C1 > C2 > C3. Find necessary and sufficient conditions on the prices C1, C2 and C3 such that no arbitrage exists.

Reference no: EM131456983

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