Good Morning everyone, I have been looking around and I couldn't find an answer to my interrogations. Hopefully someone here will be able to help (When I talk about the forward level below I mean the forward value of the underlying at the date of the Option expiry) Is the delta of an american style option on an equity underlying (paying dividends) based on the cash level or on the forward level? Letâs consider a stock currently trading 50 that will pay a dividend of 5 in a couple of days. Which call option expiring soon will have a ~50% delta? The one at strike 45 or 50? For US style options, if I get it well the intrinsic value is based on the cash level and the time value is based on the Forward level. Is that correct? Also, could you please confirm that the "rule" to see if I should exercise an US Call option the day before Ex-date is: 1/ if it is enough ITM so that there is no theta anymore and the cost to carry (paying shares now instead of later) is less than the dividend, I should exercise 2/ Otherwise I keep it (All those question are related to the opportunity (or not) to sell slightly OTM call options before a dividend payment date). Many Thanks