The reason this occurs is the options are listed company options...

The reason this occurs is the options are listed company options & arbitrage theory doesn't apply.

If they were listed vanilla options, then they would have to trade at a premium; because shares are allocated to your account instantly once the options are exercised & you would literally be able to buy the shares at a discount & sell them instantly.

Ie shares at 14.5c, options at 6c, strike 7.5c = 7.5c + 6c = 13.5c per share (if shares were allocated instantly) profit 1c per share if the shares were sold on market.

It is the time it takes from exercising the company options to receiving the stock that allows them to trade without a time premium; as the SP could be drastically different by the time the shares are allocated from the company. You will find the time premium usually disappears after the stock has been on a good run. That is because the "odds" of the stock still being received at a discount if exercised & then sold, reduces with the increased amount of time it takes to receive it.

I hope this helps everyones understanding