@Habchi
The option is exercisable @0.77c. For you to convert the option to a share you will need to pay ARL 0.77c per share irrespective of the share price. This money goes to operating cash flow of the company to do with whatever they deem appropriate.
If the share price rises to 0.78c and you have not paid and converted your option to become a share in your portfolio, you will then have unrealised theoretical equity of 0.01c, your option will have a theoretical profit value of 0.01c to the holder of the option.
If you have paid 0.77c for the option and you now own a share at 0.78c you then have an unrealised profit of 0.01c on the market
If the share price is below 0.77c the option is not worth converting to a share.
You may see growth opportunity in the future and apportion value to the options opportunity, you could also sell that opportunity to a willing buyer for a nominal amount. Remember that for the opportunity to be realised and converted in the future, the option holder you will need to pay 0.77c to convert the option to a share and that will be tradable in the open ASX market.
I hope this helps
ARL Price at posting:
55.0¢ Sentiment: Buy Disclosure: Held
