Your logic is correct.
The intrinsic value of of the GSNOA series of options (with a 5c exercise price) is 5c less than the heads. So with a 16c share price the options value is (16c-5c) or 11c. Usually the option will trade at a premium to its intrinsic value this due to the leveraged effect you have mentioned above. The longer the option exercise period has to run the higher the premium.
GSNOA should trade at least at a 1c premium with the 2 year life remaining.
Ann: Visible gold in diamond drill core at Coxs Find Gold Project, page-84
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