Ann: Progress Report, page-74

With respect, DV, I think you have it completely wrong. What you paid for the options is totally irrelevant in determining whether or not to exercise the options.
Assuming the current market value of the underlying shares remains as is (4.6 cents) then by exercising the options you are outlaying 4 cents for a share that has a market value of 4.6 cents. It's as simple as that.

Think about it this way, Using your example of paying 1 cent per option and market value of shares of 4.6 cents:
* If you do nothing (ie don't exercise), your loss is 1 cent.
* If you exercise the options, the overall loss is reduced to 0.4 cents.