Ann: Prospectus - Bonus Options, page-51

Thanks Edward for your clear explanation of Options. I am fairly new to options and not clear on how these options can be traded without exercising them. I had options in another company, but couldn't be traded unless exercised.

We got these for nothing and on Friday they finished @6.8 cents. So I understand if I sell mine I will make some money and that is it, without the need to exercise anything because I would not have any at the exercise date. Another scenario is if I buy more @ say 7 cents, I know that they can go up or down as a normal share, but in my calculation before considering exercising the extra ones I bought, that they would cost me 7+25= 32 cents, correct? Obviously my action at that time would depend on the actual share price of CPH at that time, whether to sell the options or exercise them.

This is a topic I wanted to clarify and put if for discussion in here.

Enjoy your weekend