I understand anyone holding the stock of MSFT by the end of the trading day on nov 15th, gets a 3.00 pay out per share, on dec 1-2004, assume the stock price of next day Nov 16, 2004 will drop 3.0 day, so basically nothing will changes.
But my question is how dividend is played in this case for the option player ? Do the call option holder get paid from the call option writer also ?