For deterministic discrete dividend, there are two approach Musiela approach, works when every dividend are paid at maturity of the option. Hull approach, works when every dividend are paid ...
Can someoe help with this : What is the precise arbitrage argument demonstrating that the price of an american option should be continuous around an ex-dividend date? Thanks
I am looking at two different ways of estimating the expected / implied dividends from market data. 1. Dividend futures I know that this asset class is not very liquid and might not be ...
Using the recombining tree model as described in Haug's Option Pricing Forumla one can factor in multiple future discrete dividends when calculating the option value and greeks. What's unclear is ...