Ann: Fully Gas Saturated Coals, page-620

can someone explain why the options are better value than heads when the price u pay for them by the time u convert is analogous to the share price at the time of conversion (considering they are in the money)..?? ie I pay 1c for an option exercising at 6.9c, wouldnt u be paying 5.9c to convert to heads..?? is their value in the fact that u risk a fraction of the heads price and only convert when well in the money (and the company gets some money to progress with) rather than buying heads at market price and hoping it goes up..? asking for a friend....