Just want to clear something up… we don’t really need to use div yield to create an equity position since the formula already contains the effect of reinvesting the dividends ( if you had an actual stock position) Also you only use the div yield to determine the amt of stocks you are/would actually purchase today based on the no of contracts you are long. Would that be a correct assesment?
no takers? I want to put this at rest
I believe you are correct. I think you need the dividend yield only if they ask “how many shares have you effectively purchased/sold?” Otherwise, only care about the number of shares it will be at the end, which is just contract x multiplier.
I think higgmond is correct.
florinpop, you know better than others and you are asking ? well for this one to be put at rest, I think you are right. I read the book on this one today, and did examples (just two) and did not like it a bit. div yield was there like a decoration but only used to check the amount of stocks, so yes, you are absolutely right.
flapechino - i have the majority of concepts at a decent level but I am struggling because of lack of practice. so I am trying my best to close that gap now