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This tag is to be used for questions about stocks. If possible, this tag should be accompanied by a relevant country or stock exchange tag. Questions about specific stocks are discouraged but an example can be used to illustrate a point. Stock is also known as common stock or common equity; do not use this tag for preferred stock.
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Please explain the relationship between dividend amount, stock price, and option value?
To show the link between stock price dividend amount and option value, I'm going to show three option pricing tables. But before we look at that, I'll start with the original questions observation abo …