People are paying a premium because of the time value of money.
E.g say you want to buy 100,000 shares now at 0.036 it will cost you $3600.
If you want to hold the stock for long term, you can buy options instead, 100,000 x0.023 cost you $2300.
Say in 2 years time you want to sell your shares and the price is now 10 cents.
you convert your options it will cost you 0.025 cents per option so another $2500 in total. So total cost is 2300 +2500 = $4800, which you can sell immediately for $10,000 dollars.
the key here is, you paid $1300 less overall during the whole 2 years. Which you could have used to invest in other things and made more money. (Time value of money- a dollar today is worth more than a dollar tomorrow)
If you were to buy the shares directly, it would have cost you $3600 upfront, meaning you will have less money to do other things. This is just a financial thing, time value of money opportunity costs etc... Its a premium
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People are paying a premium because of the time value of money....
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No. | Vol. | Price($) |
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12 | 4203612 | 0.008 |
12 | 12083088 | 0.007 |
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6 | 9350001 | 0.005 |
Price($) | Vol. | No. |
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