KungFuPanda

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).