huge buy just now, page-19

Well yes and no Simon.
Perhaps my wording is slightly confusing

In the advent of a takeover offer for a company a value can be attributed to the worth of the stock ie the takeover price...

Once this is known then the "true" value of any accompanying company options can be determined also.

At 10c per share for a takeover of myg by company abc the oa options exercisable at 5 have a real (true) value of 5 and company abc is obligated to offer you the differential between the offer price of the fully paids and the exercise price of the options in question.

In this example the ob's having a exercise price greater (14c) than the offer price so company abc will offer you nothing for them

And no one in their right mind will exercise them at 14 to then receive 10c whereas the oa's you'd spend 5c exercising them to then get 10c for them.

If the oa's were trading at 3 they would be snapped up for arbitrage as there's a profit to be had by converting at 5 for total of 8 to sell at 10.

I have oa's and ob's and the leverage is different depending on what a takeover price is if one was to eventuate.

Hope that helps clear up any confusion...
Cheers