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To: RocketMan who wrote (39272)2/14/2000 10:22:00 AM
From: Mort  Respond to of 45548
 
RocketMan, If what DM's husband wrote is true, and I don't think it is because he seems to be addressing the the situation of ordinary cash dividends and distributions. Even if he is correct "call holders may seek to "capture" an impending dividend by exercising, a call writers chances of being assigned an exercise may increase as the ex-date for a dividend on the underlying security approaches". By the way a "cash dividend or distribution by most issuers will generally be considered 'ordinary'unless it exceeds 10% of the aggregate market value of the underlying security outstanding"

All of the above is found on page 19 of Characteristics and Risks booklet.