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标题: Value of Option [打印本页]

作者: jarobi04    时间: 2011-7-13 13:17

I believe when the dividend goes ex the stock price falls
作者: noel    时间: 2011-7-13 13:17     标题: Value of Option

Trying to grasp the concept of why the value of a call option decreases and the value of a put option increases when there are dividends on the underlying stock.
作者: KungFuPanda    时间: 2011-7-13 13:17

When a stock pays a dividend. the price of the stock usually drops ( by the amount of the div approx). This hurts the value of a call option (because the price of the tock falls), but helps a put option (again, cause the price of the stock falls). To compensate for this, calls on these stocks may sell at a "discount" or be cheaper than calls on an indentical security that does not pay dividends (and puts will be more expensive).
作者: needhelp1700    时间: 2011-7-13 13:17

i'm not sure if either of the above answers helped, but here's another way to think about it:

paying a div = paying out equity (essentially, retaining less equity for future growth), which reduces the value of a share.

because calls benefit from value appreciation, paying a div will make value of call decline; by the same token, puts benefit from declining stock values, so puts will appreciate from dividends being paid.

does this help?
作者: bdavi77962    时间: 2011-7-13 13:17

Spanishesk Wrote:
-------------------------------------------------------
> To compensate for this, calls on these
> stocks may sell at a "discount" or be cheaper than
> calls on an indentical security that does not pay
> dividends (and puts will be more expensive).

This is what CFAI books fail to grasp.




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