If you want to turn the option into a share you have to pay 7c regardless, so if coy is trading below 7c at expiry of the option I doubt anyone would pay 7c to excercise them. Which means you lose if coy is trading below 7c at exiry time and you gain if coy is trading above 7c.
This all depends on how much you may for the option.
The option trades above 0 even though the stock is less than 7c for 2 main reasons. The leverage you get...ie if the stocks rises 5c the options probaly will too. Also the time to expiry, the longer the time premium the more its worth.
