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Posts Tagged With 'put option'

Posted by Martin May 28, 2015

If you sell a put against dividend stock, do you pay a dividend?

Recently, I got this question from a subscriber of mine. “Do you have to pay a dividend if you sell a put option against the dividend paying stock?” It is a good question and short answer to that is no, you do not pay the dividend. You are obliged to pay the dividend (its substitution) Continue reading →