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Low Exercise Price Option  (LEPO) - Financial definition

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Concise definition of the term Low Exercise Price Option

A Low Exercise Price Option is a type of European-style call option traded on the Australian Australian Stock Exchange with the peculiarity of having an exercise price of 0.01 AUD and a contract size of 100 shares.

Comprehensive definition of the term Low Exercise Price Option

A LEPO can be compared to a forward purchase of shares for the buyer of the option and a forward sale of shares for the seller of the option.

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