Before revision: We build a heuristic that takes a given option price in the tails with strike K and extends (for calls, all strikes > K, for put all strikes < K) assuming the continuation falls into what we define as "Karamata Constant" over which the strong Pareto law holds.
After revision: We build a heuristic that takes a given option price in the tails with strike K and extends (for calls, all strikes > K, for puts all strikes < K) assuming the continuation falls into what we define as "Karamata Constant" over which the strong Pareto law holds.