OS_AnnualDividend (Function)

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The OS_AnnualDividend function calculates the dividend adjustment to the asset price. This function is designed primarily for OptionStation.

Syntax

OS_AnnualDividend(AnnualDividend, ExpirDays, InterestRate) ;

Returns (Double)

A numeric value representing the dividend adjustment to the asset price.

Parameters

Name	Type	Description
AnnualDividend	Numeric	Sets Amount of dividend, expressed in dollars (enter 1.25 to represent $1.25)
ExpirDays	Numeric	Sets the number of calendar days left until expiration of option.
InterestRate	Numeric	Sets the short-term risk free interest rate as a percentage, usually for 90-day T-Bill (enter 4.9 for 4.9%)

Remarks

The OptionStation BS (Black Scholes) Annual Dividend Pricing Model uses the OS_AnnualDividend function to calculate the dividend adjustment in order to calculate the theoretical option price and Greek values.

Example

Assigns Value1 the annual dividend adjustment for a stock that will pay a dividend of 1.25 in 30 days when the risk free interest rate is 5.0%.

Value1 = OS_AnnualDividend(1.25, 30, 5.0);