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"A customer owns an ABC Call option. ABC declares a dividend for shareholders on record July 10th. The last day to exercise the option and get the dividend is:"
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"A customer owns an ABC Call option. ABC declares a dividend for shareholders on record July 10th. The last day to exercise the option and get the dividend is:"

User Vikrant Pawar
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3.9k points

1 Answer

4 votes

Answer: July 7th

Step-by-step explanation:

Call options are simply financial contracts whereby the option buyer is not obliged but has the right, to purchase bond, stock, asset or a commodity at a particular price and time.

It should be noted that before ABC declares a dividend for shareholders on record July 10th, the last day to exercise the option and get the dividend will be 3 days earlier which will be July 7th.

User Mortenvp
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