oppies, page-42

Just to help me clarify further, as I'm yet to dabble w/ options...

You pay the market price of the option (AMJO), then to exercise that option, you pay 2c, to convert the option.

So let's say, 3c (MP) + 2c (Exercise price) = 5c - I presume you can convert at any time into AMJ shares.

If so, this means - less brokerage and all the rest - you could instantly buy options and convert them into a 5.4c share, at a discount.

Am I missing something here?

As an aside, what happens if you let the AMJO options expire?
Presumably lose your initial 3c per AMJO investment?