What is the effect of an unexpected cash dividend on (a) a call option price and (b)

Question:

What is the effect of an unexpected cash dividend on (a) a call option price and (b) a put option price?
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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: