Optimal stopping and American options with discrete dividends and ...

Abstract. In this paper we analyze some problems arising in the evaluation of American options when the underlying security pays discrete dividends.







6 Options on assets paying dividends
Remark: Note that if the underlying asset pays a dividend then this decreases the value of the call option, since the holder of the the option does not receive ...
5. American options - HKUST Math Department
Since the holder of an American call on an asset with discrete dividends will not receive any dividend in between dividend times, so within the above periods, ...
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a summary on pricing american call options under the assumption of ...