Answer Happy

Posted: **Fri Mar 04, 2022 9:36 am**

: B As You May Observe From The Plot The Time Value Of The Call Option Is Always Positive Prove Analytically That A Eur 1 (38.66 KiB) Viewed 28 times

b) As you may observe from the plot, the time value of the call option is always positive. Prove analytically that a European call option on a non-dividend- paying stock always has a positive time value. Hint: You can prove that C > max(S – K,0) where C is the call option price.