lower-bounds

The lower bound for the price of a European call option is given by max[0, S(0) - K*exp(-rT) - D]. The lower bound for the price of a European put option is given by max[0, K*exp(-rT) - S(0) + D], where D is the lump-sum PV of the dividend. Where q is the continuous dividend, the lump-sum D=...

Hi David, According to Hull, dividends play a role in determining the lower bounds of options prices, but that does not appear in your video. If a question like this arises and the stock provides dividends, should we go by what Hull says? I also have notes from a class I took that says...