2
votes
2answers
120 views

american option and cash dividends

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
3
votes
1answer
231 views

Multiple Discrete Dividends

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 ...