If the Stock Makes a Dividend Payment Before the Expiration

question 41

Multiple Choice

If the stock makes a dividend payment before the expiration date, then the put-call parity relation is

• A)Value of call = value of put + share price − present value (PV)of dividend − PV of exercise price.
• B)Value of call = value of put − share price + PV of dividend − PV of exercise price.
• C)Value of call = value of put + share price + PV of dividend + PV of exercise price.
• D)Value of call = value of put + share price + PV of dividend − PV of exercise price.

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Definitions:

Integrins

Receptor proteins that bind to specific proteins in the extracellular matrix and to membrane proteins on adjacent cells; transmit signals into the cell from the extracellular matrix.

Middle Lamella

The middle lamella is the layer of pectin-rich material between the cell walls of adjacent plant cells, acting as a cementing agent to hold them together.

Fibronectins

Glycoproteins of the extracellular matrix that bind to integrins (receptor proteins in the plasma membrane).

9 + 2 Arrangement

A common structure observed in eukaryotic flagella and cilia, consisting of nine double microtubule pairs surrounding two central microtubules.