I'm trying to apply Black & Scholes formula for a real example to price a vanilla equity option but I'm strugling a little bit whith the dividend yield.
Let's assume I have a stock that trades at 50 dollar and the announced dividend in 100 days is 5 dollar, is the dividend yield = (100 / 252 days ) x 5 / 50 = 3.97% ? Am I right ?
The day after would it be (Assuming the stock price didn't change) : (99 / 252 days ) x 5 / 50 = 3.93% ?
Last question please, if the next divident is not announced yet, where do we get the dividend yield from ?
I don't have any problem with applying Black-Scholes formula but I'm just trying to apply it for a real example.
Cheers in advance.