A lognormal distribution has a longer right tail compared with a normal, or bell-shaped, distribution. Since whoever owns the stock as of the ex-dividend date receives the cash dividend, sellers of call options on dividend paying stocks are assumed to receive the dividends and hence the call options can get discounted by as much as the dividend amount. Similar to the straddle is the strangle which is also constructed by a call and a put, but whose strikes are different, reducing the net debit of the trade, but also reducing the risk of loss in the trade...
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