A summary on pricing American call options under the assumption of a lognormal framework in the Korn-Rogers model (Q424681)

This article is a summary of the longer paper ``Pricing American Call Options under the Assumption of Stochastic Dividends -- an Application of the Korn-Rogers-Model'' [in: Berichte des Fraunhofer ITWM, Nr. 158 (2009)]. They provide a closed-form pricing formula for the price of an American call option on a dividend-paying stock price. The stock price is assumed to follow the Black-Scholes dynamics and the dividends are structured according to the \textit{R. Korn} and \textit{L. C. G. Rogers} model [``Stocks paying discrete dividends: modelling and option pricing'', J. Derivatives 13, 44--49 (2005)]. The proofs are not included in this summary.