The Dividend
For option investors, it's important to understand the potential impacts of dividends on both long and short positions - in fact, dividends are a key component of pricing formulas. This rebroadcast from the OIC webinar program will provide an overview of how dividends may affect option pricing.
(9:11) - Options Pricing Recap
(16:17) - Impact of Dividends on Option Pricing
(27:44)- Early Exercise and Assignment Risk
(37:40) - What Happens When a Dividend is Reduced or Eliminated?
(39:57) - Non-Ordinary Dividends and Options Adjustments