Using a binomial pricing model, what is the impact on the price of a call option if the company increases the dividend paid to shareholders the call option price A) Will drop B) Will increase C) Will remain constant D) Impact cannot be determined ...

A Will drop When using binomial pricing model increase in ...

Using a binomial pricing model, what is the impact on the price of a call option if

Question:

Using a binomial pricing model, what is the impact on the price of a call option if the company increases the paid to shareholders? the call option price:
A) Will drop
B) Will increase
C) Will remain constant
D) Impact cannot be determined

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...