The Greek Psi (Ψ) measures the change in option value related to an increase in the continuous dividend yield of 1%. In most option pricing educational content, Psi will not be addressed.
To keep the lesson to a minimum, students should remember that Psi is negative for call options and positive for put options. The reason is because when a firm increases the dividend yield, that factor must be priced into the value of the option contract. Psi, much like Rho, has minimal influence in option pricing models.
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