Figure 14.2 The Ex-Day Price Drop Ex date +1+2。。。t Price=$10← t。。。-2-10 $1 is the ex-dividend price drop >Price $9 The stock price will fall by the amount of the dividend on the ex date (Time 0).If the dividend is $1 per share,the price will be equal to $10-1 $9 on the ex date. Before ex date(Time-1) Dividend $0 Price $10 On ex date (Time 0) Dividend =$1 Price $9 55 Figure 14.2 The Ex-Day Price Drop