AZL General Discussion, page-1709

No, you pay 5c for the opportunity to convert your option to a full share (head) by or before Nov 2022, if you decide to convert you pay a further 12c (12c options) to have a full share, so the full share has cost you 17c,you woulkd do this if you expect the share price to be 17c or higher on or before Nov 2022, you can convert at any time once you have bnought your option (s) . If you decide not to convert your option lapses by the date in Nov 2022 and ytou lose the 5c . Alternatively if the share price rises the option price could rise also and you could simply sell your option, Buying and selling is done through your usual share purchase , either a broker or Comsec or Westpac Broking or Self Wealth if you are with them.
Currently the option (AZLO) price I believe is 4.7c so it is currently "out of the money" ie conversion price would be 4.7c + 12c , much higher than current share price (12c)
Trust this helps explain.