Ann: Trading Halt, page-219

Ok I’ll warn upfront I’m about to ask some very stupid, Gumby questions as I’m a novice shareholder and a small one at that. So I get 1 free option for every 5 that I own. Let’s say I own 1000 shares, then I get 50 shares at a value of $4.50=$225 correct?
if I exercise them now I get $225? can I exercise them now?
if I wait until the share price rises say to $6 they are worth $300?
if I hold them for 12 months the cgt discount applies?
is there a case to be made to sell them now for $4.50, then use that cash to buy at the current price (circa &3)?

Have I got this completely wrong? Please don’t hammer me for asking these questions, I’m just a bit bewildered about what this all means.