New Basket Expansions and Cash Dividends

In the previous post, I presented a new stochastic expansion for the prices of Asian options. The stochastic expansion is generalized to basket options in the paper, and can thus be applied on the problem of pricing vanilla options with cash dividends. I have updated the paper with comparisons to more direct stochastic expansions for pricing vanilla options with cash dividends, such as the one of Etoré and Gobet, and my own refinement on it.