buy and hold, page-12

Options are exactly what they sound like
an option to buy a stock at a particular price ( exercise price ) up until a certain date ( expiry date)
So a 20c option that you buy for whatever market price it is at the time, or you may be issued options as an in specie dividend or the like, if you wish at any time until expiry you can pay your 20c and take up your option to buy that particular stock.
The option can also be traded in the same manner as a FPO share but you have no voting rights or entitlements that you would have with a full paid share.
If you do not exercise the option before the expiry date the option will expire worthless.