We use the futures price instead of the underlying stock price. Future prices capture the expected dividend correctly and cleanly. This is all the more a reason why to use our calculator instead of the conventional Black Scholes calculators.
How do you handle things like dividends in your model? Print
Modified on: Tue, 4 Aug, 2020 at 10:09 AM
Did you find it helpful? Yes No
Send feedbackSorry we couldn't be helpful. Help us improve this article with your feedback.