Pay the Dividends

Discussion in 'Stocks' started by lizmerrill, Oct 4, 2007.

  1. lizmerrill

    lizmerrill

    if i sell a call, am I obligated with re to the dividends that are declared on the stock?

    Liz
     
    #1     Oct 4, 2007
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  2. gkishot

    gkishot

    You are obligated in indirect way since your calls are cheaper than if the stock didn't pay dividends. So your potential profits are smaller by this amount.
     
    #2     Oct 4, 2007
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