Ann: Bonus issue of options, page-33

Yes for 100 shares you will get 20 bonus options on the 1:5 basis (you could continue to buy more shares until the record date (~5jun from memory)... and yes before 15/6/20 (after this date option is revoke/destroyed/worthless) you can pay $2.05 per option which will turn it into a share (called exercising) then you can sell or hold the share as per your original 100 shares. ALTERNATIVELY you can sell the option on the option market (HMLOA ticker?) and you can sell it for approximately the difference between the market price less the $2.05 conversion cost, unless it is trading at a premium which it usually does at the start of issue - because they are essentially worth $0 but they still have future potential value. You can also buy more of the options if you like (sometimes can give you increased gains/losses if you are dabling in the 100 share range) for the same capital investment.

Sometimes it is nice to hold onto the shares for (>1 year after exercising from an option because you will get 50% capital gains discount) otherwise you can sell it as soon as you exercise on the market and pay normal capital gains tax.