Hey, @sauri
The options have an expiry date – upon that date, if youhaven’t paid the conversion price, they disappear from your account – i.e. gone(you lose your money).
If you pay the conversion price, those options becomeordinary shares.
Hence why you bought the options cheaper than the ordinaryshares in the first place.
You need to decide:
1. Pay the conversion price and turn them into ordinaryshares.
2. Sell them before they expire
.
3. Do nothing and lose everything.
If you chose 1. (from above) then factor in the conversionprice you need to pay, and the current ordinary share price.
For example, If the conversion price is 10c per option, andthe ordinary share price is trading at, say 12c above the current option price –then it’s better to pay the 10c conversion and then, (if you want), sell theshare for +12c.
If the ordinary share price is trading less than the optionprice + conversion price, then it’s better to sell the option.
Obviously, both 1 and 2 from the above are better than 3.
Hope this helps,
Good luck mate.
