This is how other options I have received work. they are issued...

This is how other options I have received work.
they are issued to you with an expiration date and an exercise price. The company decides how many you get say 1 option for every 10 shares you hold or some other ratio.
1.You can choose to trade them just like you would shares and the purchaser can exercise them if they wish or
2. you can exercise them yourself at the exercise price even if the share price they are trading at is higher or lower. or
3.You can let them expire un exercised.
For example if they give you an option now with an exercise price of .30c you would exercise them and make .14c on today's price. if the company sets the price at say .70c I would wait to see if they get to that price or over before I would exercise them or I would sell them and get something for them.
if you buy extra options you will pay the exercise price plus what ever you paid to acquire them.

I hope this helps you