what should the continuous dividend yield be replaced by when options on an exchange rate are valued using the formula for an option on a stock paying a continuous dividend yield?



Answer :

The foreign risk rate, rf, should take the role of the continuous dividend yield is q.

A good dividend yield is what?

High enough to cover your present income demands, a respectable dividend yield. however, low enough to imply that a company's payout is not under jeopardy.

Do you remit dividend taxes?

Dividend income is typically taxable. When a taxpayer receives a dividend from a single company that is worth more than $10, they frequently receive a Form 1099-DIV in the mail. Additionally, if the person receives more than $1,500 in income, they must disclose it on Schedule B of their federal tax return.

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