ADN CHART, page-1615

As far as option conversion is concerned (options are in the money are when they are trading higher than the conversion price).

Using your example, if options have been bought at 2.9c and the SP is at 3.9c at expiry time (1.0c trail) it still makes sense to pay the 1.2c conversion fee to get the underlying security. Otherwise you forfeit any asset and end up with nothing. If you pay the 1.2c then you get the shares.

The only reason this wouldn’t make sense is if the share price at conversion time is less than 1.2c. Why pay the 1.2c to convert when you could just buy the shares on market at less than 1.2c (some would argue that converting at a loss would benefit the company by injecting new cash but that’s a different debate).

So as long as the share price is above 1.2c all options should be converted. Ie “in the money”.