Dividend Risk
Calvin Lin
contributed
This wiki is incomplete.
The dividend risk of an option refers to the rate of change of the option price with an increase in the dividend by $1.
Dividends affect an option in 2 ways:
1. Future price
2. (American options) Early Exercise
Cite as:
Dividend Risk.
Brilliant.org.
Retrieved from
https://brilliant.org/wiki/dividend-risk/