Ultimate access to all questions.
Upgrade Now 🚀
Sign in to unlock AI tutor
Which of the following correctly describes the impact of dividends on option value?
A
Dividends have no effect on European call options but reduce the value of American call options.
B
Dividends increase the value of European put options but decrease the value of American put options.
C
Dividends decrease the value of both European and American call options, but the value of American put options is unaffected.
D
With dividends, the value of American put options exceeds the value without dividends.
