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Given a LEPO Price of $0 $3.64 \$ 3.64 B) $4.31 \$ 4.31

Question 27

Multiple Choice

Given a LEPO price of $0.01,a share price of $5,time to expiry of six months,a risk-free rate of 5% p.a.and a dividend present value of $0.25,what is the value the LEPO?


A) $3.64 \$ 3.64
B) $4.31 \$ 4.31
C) $4.82 \$ 4.82
D) $5.04 \$ 5.04

Correct Answer:

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