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

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) \( \$ 3.64 \)
• B) \( \$ 4.31 \)
• C) \( \$ 4.82 \)
• D) \( \$ 5.04 \)

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Definitions:

Quantity of Cappuccinos

Refers to the amount of cappuccinos produced or consumed over a specific period or at a particular moment.

Price of Pastries

The cost at which pastries are sold, influenced by ingredients, labor, and market demand.