Ok let me put it this way, would you buy some MAN shares at 30c today?? Obviously not when you can buy them on market at half the price.
30c. That's what it will cost to convert the options, they will have to fork out and pay 30c per share = $1.8M for 6,000,000 shares. So will they do it now? NO because if they did, the market value would only be $900k. There for = $900k loss @ 15c SP.
But for EXAMPLE only, in 1.5 years down the track and our SP is $1, they will happily pay 30c for a stock worth $1.
On the other hand, If the SP at expiry is lower than the strike, chances are the options will expire and you forfeit you rights to those shares.
The share price at time of expiry may be higher or lower than the strike price. We don't know.
The holder of the options has the discretion to convert them or not before the expiry date. That's why they are called options. Hope this makes some sense.
Please do some research on what options are and how they work.
All in my opinion
MAN Price at posting:
14.0¢ Sentiment: Hold Disclosure: Held
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