Why would someone exercise 150k SRNOD with a strike price of 1.9¢ when they could have sold their oppies for .2¢ and purchased shares for 1.1¢?
1.9¢ x 150,000 = $2,850
(1.1 - .2) x 150,000 = $1,350
If they sold their oppies and bought heads, they would have ended up with around an additional 105,500 heads, and that’s taking two broker fees into consideration.
Did I miss something?
There is of course a small amount of CGT to pay on 100% profit for the oppies, but that benefit is minimal.
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