简介:Astrikeresetoptionisanoptionthatallowsitsholdertoresetthestrikepricetotheprevailingunderlyingassetpriceatamomentchosenbytheholder.Thepricingmodeloftheoptioncanbeformulatedasaparabolicvariationalinequalityandtheoptimalresetstrategyisthefreeboundary.ThesmoothnessofthefreeboundaryinsomecaseswasshowedinourarticlepublishedinJDE.Wewouldproveitssmoothnessintheothercaseinthispaperbyageneralizedcomparisonprincipleforthevariationalinequality.