Additional Information

The Black-Scholes model adjusts for dividends by accounting for the reduced value of holding an asset that pays dividends. The growth rate is adjusted from r to r - q, and a discount factor e⁻ᵠᵀ is applied to reflect this. Dividends generally reduce the value of call options and increase the value of put options. Delta, vega, and theta are adjusted accordingly, while gamma and rho remain mostly unchanged.

Concerning Graphs:

• Delta and Gamma are plotted without scaling.
• Vega is plotted on an annual basis per 1% change in volatility.
• Theta is converted to a daily value by dividing the annualized theta by 365.