European Options on Stocks 13.2 Providing a dividend yield We get the same probability distribution for the stock price at time T in each of the following cases 1. The stock starts at price So and provides a dividend yield= q 2. The stock starts at price Soe q/ and provides no income Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 13.2 European Options on Stocks Providing a Dividend Yield We get the same probability distribution for the stock price at time T in each of the following cases: 1. The stock starts at price S0 and provides a dividend yield = q 2. The stock starts at price S0 e –q T and provides no income