European Options on Stocks 13.3 Providing dividend yield continued We can value European options by reducing the stock price to soe q/ and then behaving as though there is no dividend Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 13.3 European Options on Stocks Providing Dividend Yield continued We can value European options by reducing the stock price to S0 e –q T and then behaving as though there is no dividend