Finance

Types of Dividends

September 18, 2021
Finance

Constructive Dividend: Concept and Calculation

September 18, 2021

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An asset-or-nothing option constituting a put option whose payoff is set equal to the underlying asset’s price if that price is below the strike price of the put, otherwise the put payoff is zero. This contradicts the payoff mechanism in plain vanilla options, where the payoff is the difference between the exercise price and the sport price at expiration.

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