call option price and dividend

Discussion in 'Options' started by clarodina, Feb 13, 2013.

  1. does call option price fall on the dividend amount on ex? more distant option fall more?
  2. RPEX


    Yes because the call is a deferred purchase, therefore you won't get the div that the stock gets. Dunno about time sensitivity, google it.

    Espen Haug reckons
    Phi = -T*S*e^(b-r)T * N(d1)