Final answer:
An investor must exercise their call option before the ex-dividend date to receive the dividend.
Step-by-step explanation:
When an investor owns a call option, they have the right to buy a specific stock at a predetermined price called the strike price. However, call options do not entitle the investor to receive dividends because dividends are payments made to shareholders.
In order to receive the dividend, the investor would need to exercise their call option before the ex-dividend date. The ex-dividend date is the date on which the stock starts trading without the dividend.
For example, if a company declares a dividend with an ex-dividend date of June 1st, the investor would need to exercise their call option before June 1st to be eligible to receive the dividend.