Ann: Karoon Share Purchase Plan , page-12

cujo - I think mithril was making a generic observation when he compared the SPP to a free option, and I tend to agree with him that the SPP is a free option insofar as;

1. eligible shareholders are not obliged to participate in the SPP (i.e. it is "a right but not an obligation" - gee whiz, that sounds like a basic description of a option!),

2. shareholders have until 3 September 2013 to decide if they want to participate (i.e. a bit like an exercise expiry date),

3. shareholders did not have to pay anything for the right to participate (i.e. didn't have to pay a fair value option premium), and,

4. shareholders who wish to participate in the SPP have to pay the full amount based on the $5.10 price (sort of like exercising an option by paying the strike price to do so).

therefore based on the the four points above, I think mithril was pretty much 100% correct to generically describe it as a free option!

to be clear though, the SPP is not an option - it is just that in this instance it has the characteristics of an option - do you understand now?

I can't work out if you are always trying to be disagreeable just to be a nuisance (I think so), or if you just truly struggle with some basic principles of financial markets.

with regards to today's selling... you don't have to be Einstein to realise that most of the selling today was just good old fashioned arbitrage, and you didn't have to be Einstein to work out the price would immediately head towards the placement level. All things considered, given the price closed above the $5.10 placement price, and didn't trade at or below that price all day, is a pretty encouraging show of support.