Required to pay the dividend to the writer


Question: If a holder of a call option tenders an exercise notice on the day prior to the ex-dividend date for an ordinary cash dividend, he will be: Required to pay the dividend to the writer. Required to pay the dividend to the writer only if the writer owns the underlying security. Entitled to the dividend. Entitled to the dividend only if the holder owns the underlying stock.

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Accounting Basics: Required to pay the dividend to the writer
Reference No:- TGS03417660

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