PAA issued the options to SHs as a 'reward' for their continued...

PAA issued the options to SHs as a 'reward' for their continued patience and support.

As such it would seem at the very least PAA expected the cost of an option to increase so that option holders may sell them. Further to that of course was the opportunity provided by the option itself of conversion to a full head at the fixed strike price (20c?).
PAA would then receive the strike conversion proceeds thus getting something of a cash injection (capital raise) along the way.

In order to achieve any so called reward the options cost must rise above the issue price (well duh). Of course the cost of an option should really be cost-of-head less option-strike-cost (which is 20c or close to it). At the moment that differential is only 9.5c.
Should the heads SP actually go up in the coming months expect the options price to settle at roughly 20c below the heads trading price.

Purchasing the options is a gamble that heads SP is north of of 21c by the option due date (late October from memory). Something that we all thought really ought to be easily achievable when the options were made available. As time starts to run out ...well, we'll see.