Implied Dividend Calculator

If options are fairly priced, then the following equation applies:
 
call price + strike price - stock price - put price + dividend - carrying cost = 0
 
If this equation is not satisfied, then conversion arbitrage resulting in risk-free profit is possible. Assuming risk-free profit cannot be realized, this equation can be used to determine the implied dividend based on current option prices.

Instructions
Stock Price
enter the stock price associated with the option price
Strike Price
enter option strike price. It is best to use deep in-the-money puts - that is, a strike significantly above current stock price.
Call Option Price
enter the call option price associated with the strike price
Put Option Price
enter the put option price associated with the strike price
Days to Expiration
enter number of days to option expiration or click on the calendar and specify the option expiration date. If you use the calendar, Days to Expiration will be calculated and entered by the program
Interest Rate
enter the current risk free interest rate as a percentage
Get Symbol
if you need stock and option data, enter a stock symbol here and a pop up window will appear containing current stock and option prices
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A service of Trotter Trading Systems
Friday, Dec 15, 2017