My Math Forum Financial Engineering

 Economics Economics Forum - Financial Mathematics, Econometrics, Operations Research, Mathematical Finance, Computational Finance

 March 4th, 2017, 01:10 PM #1 Newbie   Joined: Mar 2017 From: Denmark Posts: 1 Thanks: 0 Financial Engineering Hi guys, I have been struggling with this problem way to long. hope some of you can help. The problem: I know that when the underlying pays no dividends, the of a European call with a fixed strike must be increasing function of time to maturity. But in regards of European put option, which the underlying pays dividends at a given yield, q, but the interest rate is neglible (r=0). Then how can i proof that p(T1) <= p(T2) if T1 <= T2 are two maturities and p(T1) and p(T2) denote the prices of two European put options both with strike K but maturing at T1 and T2 respectively.

 Thread Tools Display Modes Linear Mode

 Similar Threads Thread Thread Starter Forum Replies Last Post MMath Career Guidance 13 May 16th, 2016 06:38 AM eightdigitword Math 0 November 26th, 2015 04:43 AM MIchaelHuff Physics 0 March 26th, 2015 03:38 AM akku8803 Academic Guidance 4 September 3rd, 2014 02:01 AM jakey321 Art 0 December 31st, 1969 04:00 PM

 Contact - Home - Forums - Cryptocurrency Forum - Top