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-Consider a family of European call options on a non-dividend-paying stock, each option being identical except for its strike price. The value of the call

-Consider a family of European call options on a non-dividend-paying stock, each option being identical except for its strike price. The value of the call with strike price K is denoted by C(K).

-(a). If K₂ > K₁, Will C(K₁) C(K₂)?

-(b). If K₂ > K₁, Will K₂ K₁ C(K₁) C(K₂) ?

-(c). Consider three options with strike price K₃ > K₂ > K₁, where K₃ K₂ = K₂ K₁. Will C(K₂) (C(K₁) + C(K₃))/2?

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