The Black-Scholes model, adjusted for dividend yield, calculates the theoretical price of a European-style stock option by factoring in the present value of expected dividends during the option’s lifespan, influencing the option’s value.
The Black-Scholes model, adjusted for dividend yield, calculates the theoretical price of a European-style stock option by factoring in the present value of expected dividends during the option’s lifespan, influencing the option’s value.
