Sentences with phrase «extrinsic value of call»

Extrinsic value of Call Options are deflated due to dividends not only because of an expected reduction in the price of the stock but also due to the fact that call options buyers do not get paid the dividends that the stock buyers do.

Not exact matches

This makes call options of dividend paying stocks less attractive to own than the stocks itself, thereby depressing its extrinsic value.

Or unless the extrinsic value is nothing, but even then, unless the investor really wants that position, he is more likely to just sell the call for an equivalent gain on 100 shares of stock.