trading halt pending capital raising, page-20

hi jarg

Well technically, yes the options should be 4c less than the SP, however given the greater leverage provided by options (you can buy more for the same price while being subject to greater % returns), generally options will trade at a premium. The premium usually depends on whether they are already in the money and how long to expiry.

With only less than a eyar to expiry, the WCP options are probably not going to ever trade at a premium...but if oyu assume that the options will go up a cent for every cent WCP goes up, then the percentage returns are greater (eg 1c increase on current WCP option price is greater % return on 1c increase in the WCP shareprice). However of course the exact opposite occurs if the shareprice falls, ie the % loss is magnified.

Personally I usually don't hold to exercise. I 'invest' in shares, 'trade' in options.

Cdchi1