How Does a Dividend Yield Adjustment Factor into the Black-Scholes Model for Stocks?

For stocks that pay dividends, the expected future dividend yield reduces the value of a call option and increases the value of a put option. The Black-Scholes model adjusts for this by treating the dividend yield as a continuous cash outflow, effectively reducing the expected growth rate of the underlying asset's price in the formula.

This adjustment is generally irrelevant for non-dividend-paying cryptocurrencies.