Why Yowie shares climbed 15%, page-26

Never convert and option before expiry! on sell the option instead. There is always (theoretically) more value in an option than the difference between the share price and exercise price. Ie a call option should never trade at a discount to the difference between the share price and the exercise price (P-X). As the option moves to expiry the options premium to (P-X) should diminish as the potential return outcomes falls. Options 101.