Black scholes put option with dividend zombie


The payment of dividends for a stock has an important impact on how options optiion that stock are priced. Stocks generally fall by the amount of the dividend payment on the ex-dividend date. This impacts the pricing of options. Call options are less expensive leading up to the ex-dividend date because of the expected fall in the price of the underlying stock.

At the same time, the price of put options increases due to the same expected drop. The mathematics of the pricing of options is important for investors to understand in order to make informed trading decisions. Note: Iption page has been translated by MathWorks. Please click hereTo view all translated materals including this page, select Japan from the country navigator on the bottom of this page.

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Black scholes put option with dividend zombie

Black scholes put option with dividend zombie