Question 19 Output Area: You only get the dividend if you own the stock. The dividend...

 

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Question 19 Output Area: You only get the dividend if you own the stock. The dividend would increase the return on your stock investment by the amount of the dividend yield, $.80/$40 = .020, or 2.0%, but it would have no effect on your option investment. This question illustrates that an important difference between owning the stock and the option is that you only get the dividend if you own the stock. Question 19 Output Area: You only get the dividend if you own the stock. The dividend would increase the return on your stock investment by the amount of the dividend yield, $.80/$40 = .020, or 2.0%, but it would have no effect on your option investment. This question illustrates that an important difference between owning the stock and the option is that you only get the dividend if you own the stock.

Answer rating: 100% (QA)

Yes thats correct Dividends are payments made by a company to its shareholders ty... View the full answer