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    Confused about dividend risk

    Thank you for your response, if I understand correctly the equation is if the Put Price > (Transaction Costs + Dividend) then it is profitable to exercise. I also asked someone else the same question and they responded differently. He said that it is profitable to exercise when the extrinsic...
  2. L

    Confused about dividend risk

    https://i.imgur.com/mR21eLV.jpg I started to read options as a strategic investment to add to my current knowledge and I was confused by the example provided. Tastytrade says that exercising a call is worth it if the extrinsic value is less than the dividend, but this book says that is not...
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