12.3 European Options on Stocks Paving continuous dividends (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, 4th edition@ 2000 by John C. Hull Tang Yincai, C 2003, Shanghai Normal UniversityOptions, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2003, Shanghai Normal University 12.3 European Options on Stocks Paying Continuous Dividends (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