Replies to post #4204 on A.I.M. Users Bulletin Board (AIMUSERS)

[Bernie Goldberg]

Hi K,
You wrote:The dividend has a time value so it is less at Buy time.
I'm sorry but I don't understand you use of "Time Value"
An option has time value. The day it is written it has a value of X. It will expire at some time in the future at which time if it is not executed it is worthless.
When a company goes ex dividend as of a certain date, shareholders of record on that date WILL receive a dividend in CASH on the dividend date. Are you trying to say that the value of Cash declines with the passage of time? Please explain.
Bernie