It’s an option so it means you can do it not do something. It’s...

It’s an option so it means you can do it not do something.

It’s a company option not an eto for starters.

it will have an expiry date, once it’s expired you lose your option.

It will have an excercise price, let’s say 1c. You can convert the option to a share if you were to pay the 1c.

If the stock was 2c and the ex price of the options is 1c there is a think called a black scholes pricing model where you can put the details in and it will tel you estimated fair value.
If the stock was 2c and the option 1c ex price it should trade at 2c-1c plus a value for time to expiry and a value for leverage so let’s say this is worth 0.3c

then the 1c option should be worth 1.3c if the stock is 2c... now if the stock doubles to 4c the option should be worth 3.3c so it’s tripled.

This leverage can work both ways