NVA 2.70% 19.0¢ nova minerals limited

NVAO options, $0.0325 strike to 31/8/20, page-56

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    1 x NVAO option gives you a right to buy 1 x NVA share at a future point in time for a fixed price of $0.0325.

    A real world analogy might be you pay $100 for a voucher to ‘lock in’ a $2,000 price for a cruise to Hawaii in June 2020. Meanwhile the cruise company lifts the price to $3,000.

    Fast forward to June 2020 and you just pay $2,000 for your cruise. Your total cost has been $2,100.

    Alternatively ...

    you decide you don’t want to go to Hawaii. You still have the voucher that locked in a $2,000 price. You sell the voucher ( that you paid $100 for ) to someone for $250. You made a $150 profit by selling the voucher.
 
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