it was a true/false statement, so i replied false because i thought of the case of a dividend pay stock, but the answer is that the statement is correct. And in the answer they said it doesn’t worth it except for a divid-stock where it can be interesting. That’s why I was confused…/definitely that was a tricky question
Don’t options contractually reprice to account for dividends?
Not normal dividend payments. Special dividends and corporate actions are handled contractually.