An option is essentially a contract. You're buying a contract -...

An option is essentially a contract. You're buying a contract - not an actual IVZ share.

This contract is tradable - You can buy at 4.5c and sell for whatever price you want - if buyers are willing. So you can treat it as a share in such case (because this particular one is tradable)

However, generally, these options (or "contracts") are non-tradable, and instead only executable as per the contract terms

"Executing" an option (contract) essentially converts it to an IVZ share. If you have say 100,000 options, and choose to execute all 100,000, they will be converted to IVZ shares. You will then own 100,000 IVZ shares and no more IVZOA.

To execute the contract - You have to pay 20 cents for each option you have, and it must be before the date of 07/06/26. That's the terms of this contract.

If lets say in 6 months time, IVZ is trading at $1 (please let this happen) - You will still only have to pay 20c to convert each of your options and you will be given IVZ shares which are worth $1 each. If IVZ is trading at $2.40 (lol) say 1 month before expiry of the option - you can convert them for 20c each still, as per the contract, and have IVZ shares worth $2.40

Really, options are a lower risk exposure to the stock, but at a premium.

You can buy 100,000 options for $4500 in todays market - if sh1t hits the fan (say it goes to 0), you've only lost $4500. If things go really well - You have to spend another $20,000 to convert them.

Or, you can buy 100,000 shares for $10,500 - If sh1t hits the fan (say it goes to 0), you lose $10,500. If things go well, you don't have to worry about forking out $20,000 to convert anything.

In saying all this, if IVZ shares are worth $1, my guess is the options will be worth around 80c. So you can just sell them on market for 80c and not need to worry about converting them (since these particular options are tradable)

Sorry for the detailed explanation, but it should cover your question well