Suppose the LEPO Has an Exercise Price of One Cent,the $\$ 11.97$

question 38

Multiple Choice

Suppose the LEPO has an exercise price of one cent,the share price of the underlying share is currently $13.25,the time to expiry is two months,the risk-free rate is 5.0% p.a.and the present value of the dividend is $0.84.What would be the price of this LEPO?

• A) \( \$ 11.97 \)
• B) \( \$ 12.50 \)
• C) \( \$ 12.79 \)
• D) \( \$ 13.00 \)

Calculate the effects of taxes and subsidies on consumer choices.

Master the concept of utility and how it relates to individual preferences.

Distinguish between different types of income and how they affect leisure and labor decisions.

Utilize mathematical tools to solve optimization problems in economics.

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