FA-61785 / Options payoff and settlement / Member archive

Early call exercise before an ex-dividend date: out-of-the-money calls can be exercised · case 05

Holders exercise worthless calls to capture a dividend they cannot receive profitably.

Member previewVariant 5 · 3 implementations · 8 checks per implementation

Case contract

Inputs call price, spot, strike, dividend and whether today is the last cum-dividend day. Exercise only on the last cum-dividend day, only if the call is in the money, and only if the dividend is strictly greater than the call's extrinsic value (price - intrinsic). Amounts compared exactly in cents. Return true/false.

Why this case matters

Option expiry, exercise and settlement engines move cash and shares; a wrong branch misstates obligations.

One recorded failure

Sample boundary fixture

This sample comes from the broken implementation of a controlled reproducer.

Boundary fixture	Actual	Expected	Outcome
regression in-the-money guard 1	`true`	`false`	Failed

MEMBER ARCHIVE

The complete case is available to members.

This record includes three runnable implementations, regression fixtures, execution results, and source hashes.

Member access is invitation-based. Sign in with your invited account to inspect the sources.