All else equal,call option values are lower

Name: All else equal,call option values are lower
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Call option values are lower for high dividend payout policies because the payment of dividends reduces the value of the underlying asset, which in turn reduces the value of the option. Therefore, option buyers may be less willing to pay a premium for an option on a stock with a high-dividend payout policy. May has no significant impact on call option values.

All Else Equal,call Option Values Are Lower