3. Show that in a Black-Scholes market with non-negative risk-free rate and no dividends, the Asian call with strike K and maturity T > 0) is, at time t = 0, less valuable than the standard European call on the same stock and with the same strike and maturity (max 4 points). HINT: You need the Jensen inequality for integrals: (-a / sce)de) a, f:R + R and convex functions 0 : R R. 3. Show that in a Black-Scholes market with non-negative risk-free rate and no dividends, the Asian call with strike K and maturity T > 0) is, at time t = 0, less valuable than the standard European call on the same stock and with the same strike and maturity (max 4 points). HINT: You need the Jensen inequality for integrals: (-a / sce)de) a, f:R + R and convex functions 0 : R R