Business and Personal Finance Dictionary

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• LOW EXERCISE PRICE OPTION
  
  An extremely deep in-the-money European Call Option traded on the ASX (q.v.) options market, with strike price between one and ten cents. Since the strike price is so low, the LEPO's owner is extremely likely to exercise it, and it is roughly equivalent to a Forward Contract (q.v.) with a low price. The LEPO owner receives no dividends, but has nearly the same exposure to a move in the underlying stock price as if he owned a share. I.e., the LEPO's delta is nearly unity. (Source: Australian Stock Exchange.)
  
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