Patrick's Rants



12/22/2011

ANH Goes Ex-Div

Filed under: Money,Stocks — site admin @ 7:58 pm

ANH is ex-dividend today meaning that if you buy it today you don’t get the $0.21/share dividend that pays in January. I was trying to do some research on how the dividend affects the price of put options and ran across a blog post from 2008 titled How dividends effect option pricing, which basically says the other traders have already priced the dividend into the value of the options – which very is likely to be true.
Looking at the change, or lack of change, in the price of ANH options from yesterday to today does seem to indicate that the price is already figured in, the dividend is already figured in the option premium.

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