Is it better to exercise a call option on the with-dividend date or on the ex-dividend date?

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Is it better to exercise a call option on the with-dividend date or on the ex-dividend date? How about a put option? Explain.

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 09, 2011 05:31 AM

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Is it better to exercise a call option on the with-dividend date or on the ex-dividend date?

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a When you exercise a call you purchase the stock ...View the full answer

Principles of Corporate Finance

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