can somebody explain to me how cfro works pls, page-7

giar you are on the right track but mistaken.

At the moment you are paying a 'premium' of 1c per share option to buy shares at 2.5 cents in November 2008.

So your total cost is 1 cent for the premium (paid now) plus 2.5 cents for the share (paid in Nov). So 3.5 cents in total. As Goldbrick suggested the heads would need to be 3.5cents at this stage to break even.

Please note their is no obligation to convert your option to shares in November. You would simply forfeit the premium paid.