Ann: Magellan Global Fund Partnership Offer Update, page-18

Your question: "Except, my next assumption in your example is that i will get the option so to speak of paying for 7500 units at a 7.5% discount to NAV within 3 years of the recorded date they were issued? Is this correct or are the "additional benefit" options transacted differently?"

Answer: Not quite right. The discount to NAV will be calculated on the date that you exercise the option, not on the date of the issue of the option. Therefore the cost to exercise the option will fluctuate daily. Therefore, the arbitrage opportunity that you identify in your next paragraph will never really materialise.