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system
is the writer of a call ever required to surrender dividends to the call option buyer?
user
the dividend goes to he who owns the stock when it goes ex-div. a buyer (the call buyer who exercises) will not exercise unless the stock plus dividend are in the money. otherwise they'd be buying the stock at a premium.  i like the scenario your friend doesn't. if i can find a high dividend stock and sell the call for a decent price, i may get a great return on a stock that's gone down 5% over a year's time. if it goes up and called away, that's fine too, it means a profit.
assistant