dividend risk. Here we consider the implications of a possible abrupt stoppage in the dividend payment. We represent the price of the option, in terms of the moneyness ($S_0/K$), for different values of $\lambda$. We have used typical market values for the parameters: $r=4\%$, $\delta_a=1.75\%$, $\delta_b=0\%$ and $\sigma_a=\sigma_b=25\%$. We plot as well the pay-off function in a solid (black) line.[]{data-label="figVCM"}](figure1.eps "fig:"){width="60.00000%"} ]{}

In figure \[figVCM\] we can see the effect of a change in the dividend policy on call prices. In particular we consider that the quoted firm may suddenly stop the dividend payment to the shareholders. The consequence is that the value of the option increases due to the possibility of a stoppage in the distribution of dividends. The optimal exercise price also increases with respect to the undisturbed one: note that $\lambda=0$ represents the limiting situation in which the change is impossible. When $\lambda$ grows the value of the option attains progressively the stock price, which correspond to the limiting case $\lambda\rightarrow \infty$, since here $\delta_b=0$. For finite values of $\lambda$, however, all prices must eventually converge to the pay-off function: we can check this property in the inset of figure \[figVCM\].

[![Option prices for a perpetual vanilla 