Thanks for that. But one issue selling the options on the market...

Thanks for that.

But one issue selling the options on the market is that you would be subject to the full 100% capital gain if sold on market within one year of their issue (cost base 13.5 cents). So any arbitrage of a few cents will be lost in tax, if the intention is to sell the options on market and use the proceeds to buy back the equivalent number of VXR shares. After 1 year, the gain is discountable by 50% (depending on your other gains/losses for the year), but you still will be out of pocket when tax is considered if buying back the same quantity of VXR shares. By out of pocket I am comparing both scenarios to simply exercising the options to obtain that amount of VXR shares.