Hi,
After a dividend is paid, it drives down the price of the stock (the underlying). I understand why this is bad for calls and good for puts. I cannot figure out why the more costs paid increase the price of calls and decrease the price of puts.
Hi,
After a dividend is paid, it drives down the price of the stock (the underlying). I understand why this is bad for calls and good for puts. I cannot figure out why the more costs paid increase the price of calls and decrease the price of puts.