Supposeastock pays a quarterly dividend of $$3.$ You plan to hold a short position in the stock across the dividend ex$-$date. What is your obligation on that date? If you are a taxable investor, what would you guess is the tax consequence of the payment? $35$ Introduction to Derivatives $($In particular, would you expect the dividend to be tax deductible?$)$ Suppose the companyannouncesinsteadthatthedividendis$$5.$Shouldyoucarethatthedividend is different from what you expected?