question archive Which of the following strategies do we use to prove that relationship between call option (and put option) prices and the strike price is convex? A
Which of the following strategies do we use to prove that relationship between call option (and put option) prices and the strike price is convex? A
Subject:FinancePrice:2.87 Bought7
Which of the following strategies do we use to prove that relationship between call option (and put option) prices and the strike price is convex?
A. Bull spread
B. Bear spread
C. Butterfly spread
D. Straddle
E. Strangle
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer: Butterfly spread strategy
We use Butterfly spread strategy to prove that relationship between call option (and put option) prices and the strike price is convex
