Ann: Appendix 3B, page-13

NOT correct - normally options are less than the SP by less than the exercise price because of the leverage involved. That is, an increase in the SP will be reflected by a similar increase in the option price, and since you can buy more options for the same cost you make a bigger profit (obviously the is also a greater risk of total loss as well). However, as we near the expiry date there is less time to wait out the SP increases so a difference of the full 8c is now to be expected. However a couple of months back you could often pick up th options at over 8c below the SP so I was able to make a few thousand dollars simply buying cheap and exercising the options.