问题如下：
How is the Black-Scholes-Merton formula used to value European options on a dividend-paying stock?
选项：
解释：
The present value of the dividends that have ex-dividend dates during the life of the option is subtracted from the stock price when the formula is used. The volatility applies to the stock price minus the present value of the dividends. In this context, a dividend is defined as the reduction in the stock price on the ex-dividend date.
不是很理解这个答案，盼复，谢谢。
