Australian investors who have exposures to ASX-listed entities may not always consider equivalent 
investments. This article considers an equivalent (like-for-like) investment in two particular instruments:

• low exercise price options (LEPOs); and 
• call/put parity positions (via the use of exchange traded options).
  Both LEPOs and exchange-traded options are traded on the Australian Securities Exchange. 

Where an investor considers establishing a position in a LEPO or a call/put parity position, what are the Australian tax implications for the investor who resides in Australia and establishes these positions on capital account? This article addresses this question.