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