If you buy 10 mill options @.001 it will cost you 10k now. When...

If you buy 10 mill options @.001 it will cost you 10k now. When executed. To convert the 10 mill options into cad shares it will cost a further .003 per share. Which can be done at anytime before the expiry date.

Once you have the options you can buy and trade them like normal shares. ie if option price goes too .01 you can sell your 10 mill shares for a 10x profit.

In summary it will cost you 10k now. And to exercise the options and make the cad shares ( heads) it will cost you a further 30k before the 2020 expiry date. Now here's the benefit;

If cad shares go to 0.40 by 2020 and you have paid the 30k to exercise you will have 10 mill shares with a net worth of 4 million dollars. Not bad for a 40k outlay.

If cad heads don't go past .004 by expiry date you will have lost 10k.

Buy .001
Convert .003

So your breakeven price for the heads is .004

Hope this helps