The Call Option on a Dividend Paying Equity Compared to a Non-Dividend

question 35

Multiple Choice

The call option on a dividend paying equity compared to a non-dividend paying equity is:

• A)more valuable because of the extra dividend payment.
• B)equal in value because cash dividends are paid on equity only.
• C)less valuable because after cash dividends are paid out the value of equity decreases.
• D)less valuable if the dividend paying equity is in-the-money while the non-dividend paying
• Equity if out-of-the-money.
• E)None of the above.

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Definitions:

Brain Wave Patterns

Brain wave patterns refer to the electrical activity in the brain, categorized into different types like alpha, beta, delta, and theta waves, each associated with different states of consciousness.

Spatial Neglect

A neurological disorder characterized by the failure to attend or respond to stimuli presented on the side opposite the brain lesion.

Right Hemisphere

The right half of the brain, which is associated with creative thought, spatial ability, and the processing of visual and musical information.

Left Hemisphere

The left side of the human brain, often associated with analytical thought, logic, language, and processing of serial sequences.