"Each Option will provide shareholders with the right, but not the requirement, to purchase one Magellan share at an exercise price of $35.00 per Option, expiring on 16 April 2027."
Options are simple. Its like a place holder on some shares at a locked in price. so if say MFG went to $50 a share, you still have the "option" to execute the option into shares for $35 each at the limit of 1/8th of your holdings from the announcement; thus making $15 profit per share if you sold them instantly.
Often this can block the share price up at the $35 mark, as 1/8th of the current market start offloading their options.
MFG Price at posting:
$16.11 Sentiment: Buy Disclosure: Held
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