Pegasus2008

ohai Wrote:
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> If you hold the option, you don't receive the
> dividend. So tomorrow, all you will have is the
> option to buy the $95 stock for $0. So, your value
> is $95. Obviously, first scenario is superior in
> value.

In your senario, the options exchange would adjust the price of the option to include a cash component, something that commonly happens... check out some option quotes and you'll see sometimes odd option series published for this and other similar reasons. You gain nothing by exercising early, except for some possible liquidity and transaction cost purposes.