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Share
4,980 Posts.
1248
17/11/16
10:46
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Don't forget to exercise that option you need to pay 0.005 per option (the strike price).
So if the share price is 0.025, then the option will trade at 0.020, the discount being the amount that you have to pay when you exercise that option.
As the options only expire April-19 which is 2 years away you also save on the opportunity cost of not paying that additional 0.005 upfront.
So the fair value option price should be at least
Share Price - [ Strike Price x (1+Opportunity Cost Interest Rate)^2 ]
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