pre open, page-17

re: oppiies - hotcongo Bloodwynch the options are cheap. Anne got a little mixed up, they are exerciseable at 3c, but her sums are still right and she is also right that they are still cheap. At 3.9c for the ords, the options have an intrinsic value of 0.9c (3.9c - 3c = .9c). Trust me in saying that the options should always trade at the very least at the instrinsic value, otherwise there is an arbitrage opportunity to make costless profit, ie exercise options at 3c and sell the ords at market. This right how ever does not come free, therefore the options should be trading at a premium to their instrinsic value. .3c time value for an instrument with over 6 months to run is too cheap. plus you get the added benefit of more leverage, the options are cheap!