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Question: 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. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

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Category:- Basic Finance
Reference No.:- M92790952

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